Question About Income Taxes...1099 G HELP ?

I received a 1099G from the Illinois Department of Revenue today. It is a very small piece of mail with hardly any information in it. It has a Box 2- Refunds, credits, or offsets from your state or local income tax. The following is exactly what it says :

This amount was reported to the IRS and may be taxable to you if you deducted the tax paid as an itemized deduction on your federal income tax return. Even if you did not receive the amount shown, it still may be taxable yo you. See the Form U.S. 1040 instructions for more information ( $567.00 )

What the heck does that mean ? Do I have to pay taxes on $567.00 ?

If you answer this question, please speak simple language, because if I knew what the hell it meant, I wouldn't be asking -------> hahaha

Thanks All !

3 Answers

Relevance
  • Anonymous
    8 years ago
    Favorite Answer

    It is saying if you dedcted state income taxes on schedule A of your tax return, then any refund of state tax is taxable on the federal tax return for the next year.

    If you had a simple tax return and did not itemize deductions on schedule A then you do not need to report this income.

    If you do not know what a schedule A is, then you dont need to worry about this 1099G. It is just an informational form.

    Hope that helps. Donna, CPA

    Source(s): 30 years practicing as cpa and tax preparer.
  • Judy
    Lv 7
    8 years ago

    Did you itemize (file schedule A) last year? If not, just put the form with your other tax stuff in your files for this year, you don't show it on your return.

  • rtfm
    Lv 7
    8 years ago

    IF you itemized deductions last year, and IF you deducted your state tax paid, then you have to report that amount as income this year. If you didn't itemize, it doesn't apply to you.

Still have questions? Get your answers by asking now.