State Taxes

4.4 Interest/Dividends/Other Types of Income: 1099 Information Returns (All Other)

I received a Form 1099-G, for my state tax refund. Do I have to include this amount as income on my return?

If you did not itemize your deductions on your Federal tax return for the same year as the state or local tax refund applies to, do not report any of the refund as income.

If you received a refund of state or local income taxes this year that you took an itemized deduction for in an earlier year, you may have to include all or part of the refund as income on your tax return. Report your taxable State or Local Refunds on Form 1040 (PDF).

16. Other (Alternative Minimum Tax, Estates, Trusts, Tax Shelters, State Tax Inquiries):

The IRS corrected my return and sent me an additional refund. Does this mean I am also entitled to an additional refund on my state tax return?

Whether you are entitled to an additional state tax refund depends on the nature of the change which was made to your federal return. For example, if on your federal tax return, you used the wrong line on the tax tables to figure your tax, this may not have an impact on your state tax return. However, if the change was made to the amount of your taxable income on your federal return, it may have an impact on your state tax return.