What is a 1099-G Form?
What is a 1099-G form and what is the 1099-G tax form used for?
The 1099-G tax form is used to report certain government payments such as:
Why do I receive 1099-G form?
Taxpayers who receive a refund of state or local taxes may receive a Form 1099-G. If the taxpayer has unemployment compensation, he or she will also receive the tax form 1099-G.
Are the state refunds taxable?
State refund are not taxable if in the year the taxpayer paid tax, either she or he:
In another word, the state refunds are taxable if:
the taxpayer itemized deductions in the tax year, and
the taxpayer received a state or local tax refund
In this case, the taxpayer will have to include all or part of the refund in his or her taxable income.