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 itemized deductions on your Federal tax return for 2003, and received
a refund of state or local taxes in 2004, you may have to include all or part
of the refund as income on your 2004 tax return. Report your taxable State
or Local Refunds on Form 1040, Line 10. You cannot use Form 1040A or 1040EZ.
Refer to Tax Topic 405, Refund of State and Local Taxes , and Publication 525 , Taxable and Nontaxable Income , for further
information.
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. Contact your state
tax office for additional information. It is helpful to have a copy of your
tax returns (federal and state) and a copy of the IRS notice when you call.
To access the state you need to direct your question to, please go to our Alphabetical State Index.
