Frequently Asked Questions - Form 1099-G
- What is a Form 1099-G?
- What should I do with my Form 1099-G? Do I need to pay the amount shown?
- Why did I receive this form?
- Why would I have to report my refund as income?
- I claimed a Missouri refund, but the Missouri Department of Revenue applied the money to a bill for another year. Do I still have to report this as income on my federal tax return?
- I had an overpayment on a previous return, and I had the money applied as a credit on the following year's return. Since I didn't get a refund, do I still have to report this as income on my federal tax return?
- I have received a Form 1099-G referring to a two year old refund that was just issued this year. Can the Form 1099-G be corrected to reflect this information? If not, what should I do?
- I received a Form 1099-G indicating a refund of $1,500. I amended my return a few months later and had to pay $500. Shouldn't the statement say my net refund was $1,000?
- I have checked my records and I'm sure my Form 1099-G is incorrect. What should I do?
- My Form 1099-G indicates a refund amount and an interest amount. What am I supposed to report as income?
What is a Form 1099-G?
The Form 1099-G is a report of income you received from the Missouri Department of Revenue. The Internal Revenue Service requires government agencies to report certain payments made during the year, because those payments may be considered taxable income for the recipients. The department must report any refund or overpayment credit amount issued to individuals who claimed itemized deductions on their federal income tax returns for the year noted on Form 1099-G. Any interest paid on refunds must also be reported.
What should I do with my Form 1099-G? Do I need to pay the amount shown?
The Form 1099-G is a report of income you received from the Missouri Department of Revenue. It is not a bill, and you should not send any type of payment in response to the form. If a professional preparer handles your taxes, you should give this form to the preparer, along with your other tax information, such as W-2 form(s). If you prepare your own taxes, you should review the federal return instructions for reporting state income tax refunds, or visit the Internal Revenue Service's web site at www.irs.gov for more information.
Why did I receive this form?
The Missouri Department of Revenue's records show you were issued a refund or overpayment for the taxable year shown on Form 1099-G, and that you may have claimed itemized deductions on your federal income tax return. Therefore, you may be required to report the refund or credit as income on your federal income tax return.
Why would I have to report my refund as income?
In computing itemized deductions on your federal tax return, you are allowed to deduct state income taxes paid during the year. Most people deduct the amount of income tax withheld, as shown on the W-2 form, plus any Missouri estimated tax payments they made during the year. Since this deduction reduces federal taxable income, if any part of the state tax deducted on the federal return is later refunded, that amount has to be reported as taxable income for the year in which the refund is issued.
Example: A taxpayer deducted $5,000 in state income tax on his 2000 federal return, based on the Missouri withholding amount from his W-2. When he filed his 2000 Missouri return, he found he was entitled to a refund of $1,000, which was issued on April 1, 2001. This means that he only paid $4,000 in state income taxes for 2000, not the $5,000 he claimed. Therefore, the taxpayer will be required to report the difference of $1,000 (the amount of his refund) on his federal return for 2001.
I claimed a Missouri refund, but the Missouri Department of Revenue applied the money to a bill for another year. Do I still have to report this as income on my federal tax return?
Missouri law requires refunds or credits be applied to outstanding bills. The application of funds doesn't change the fact that you claimed an overpayment for the year on your statement. Even though you didn't actually receive a check, you received the benefit, and you are subject to the same federal reporting requirements as if you had received a refund check.
I had an overpayment on a previous return, but I had the money applied as a credit on the following year's return. Since I didn't get a refund, do I still have to report this as income on my federal tax return?
A refund and a credit are simply different types of overpayment transactions. Any overpayment allowed on your return must be reported, whether issued as a refund or as a credit, on your Form 1099-G. You are subject to the same federal reporting requirements as if you had received a refund check.
I have received a Form 1099-G referring to a two year old refund that was just issued this year. I reported this overpayment of income on my federal return last year. Can the Form 1099-G be corrected to reflect this information? If not, what should I do?
The Missouri Department of Revenue is required to report refund transactions in the year they actually occur. Even though the overpayment occurred in a prior year, the refund was received in the current reporting year. Since the transaction took place in the current reporting year, the amount of overpayment would be indicated on your Form 1099-G.
Contact the Internal Revenue Service, or visit their web site at www.irs.gov. to inquire if you should file an amended return for an overstatement of income on any prior year's return. If you do not have record of filing a past return in the current tax year, or you are resolving a claim or dispute related to the return in question, call the Missouri Department of Revenue at (573) 751-3505, by e-mail at income@dor.mo.gov, or write to the Division of Taxation and Collection, P.O. Box 385, Jefferson City, MO 65105-0385.
I received a Form 1099-G indicating a refund of $1,500. I amended my return a few months later and had to pay $500. Shouldn't the statement say my net refund was $1,000?
Under federal law, the Missouri Department of Revenue is required to report the actual refund or credit amount. The amount cannot be netted against other transactions. Therefore, your Form 1099-G is correct as issued. For information on how to report the income and deduct your payment on your federal return, visit the Internal Revenue Service's web site at www.irs.gov.
I have checked my records and I'm sure my Form 1099-G is incorrect. What should I do?
You may call the Missouri Department of Revenue at (573) 751-3505, e-mail us at income@dor.mo.gov, or write to the Division of Taxation and Collection, P.O. Box 385, Jefferson City, MO 65105-0385. Be sure to include your social security number, and explain why you believe the Form 1099-G is incorrect.
My Form 1099-G indicates a refund amount and an interest amount. What am I supposed to report as income?
You may need to report both amounts as income. If so, the interest would be included with the other interest income you report on your federal return. For information on federal reporting requirements, visit the Internal Revenue Service's web site at www.irs.gov.
Can't find an answer to your question(s)? Email us! income@dor.mo.gov