1099-G Frequently Asked Questions
Q. Is the 1099-G amount taxable? Where do I report it on my Connecticut and federal income tax returns?
A. Form 1099-G, Certain Government Payments, is used to report a state income tax overpayment that was issued as a refund credit or offset in the prior year. The requirement to report your state income tax on your federal income tax return depends on whether you itemized your prior year deductions on federal Form 1040, Schedule A:
If you did not itemize your deductions on your federal income tax return for the same year to which the state overpayment applies, you do not need to report any of the overpayment as income.
If you received a state overpayment that was entirely or partially included in the itemized deductions on Schedule A of your prior year federal Form 1040, you may have to include all or a part of the overpayment as income on Schedule 1 line 10 of this year’s federal Form 1040.
If you have any questions regarding this, please consult your tax advisor or the Internal Revenue Service at (800) 829-1040.
Taxable refunds, credits or offsets reported on Schedule 1, Line 10 of the federal Form 1040 are not taxable for Connecticut purposes and may be subtracted from the federal adjusted gross income on Schedule 1 of the Forms CT-1040 or CT-1040 NR/PY.
Q. I haven’t received my Form 1099-G from Connecticut for last year’s overpayment.
A. The Connecticut Department of Revenue Services does not mail paper copies of Form 1099-G. If you wish to obtain a copy, please return to the prior screen to print one for your records.
Q. Why would the amount reported on Form 1099-G be different from the amount of last year’s refund check?
A. The amount reported on the Form 1099-G includes the total overpayment from your Connecticut income tax return. In addition to the amount issued as a refund, the Internal Revenue Service requires the 1099-G figure to include the portions of the overpayment that were:
applied toward your estimated tax,
donated to charities listed on the Connecticut income tax return,
applied to Connecticut use tax reported on your Connecticut income tax return, or
offset to a debt you owed to the Connecticut Department of Revenue Services, another Connecticut state agency, the Internal Revenue Service, or other states’ tax departments.
Q. The Form 1099-G shows the overpayment from the original Connecticut income tax return that I filed last year. However, I subsequently amended this return and made an additional payment. Should I receive an amended Form 1099-G from the Department of Revenue Services or should I subtract from the Form 1099-G figure the amount of additional tax I paid when I amended my return?
A. You must report on your federal income tax return the full amount of the overpayment as reported on the Form 1099-G. You may not reduce that amount by the additional tax you paid when you filed your amended Connecticut income tax return. Any additional Connecticut income tax you paid in the following year may be included on Schedule A of that year's federal Form 1040. (For example, if you amended your 2016 Connecticut income tax return in 2017 and paid additional tax, you will enter that additional tax paid in 2017 on Schedule A of the 2017 federal income tax return.)
Q. I forgot to include the Form 1099-G figure on my federal and Connecticut returns. Am I required to amend both the federal and Connecticut returns?
A. You may need to amend your federal return if the overpayment was entirely or partially included in the Schedule A itemized deductions for your prior year federal Form 1040. However, you will not need to amend your Connecticut income tax return because the overpayment is not taxable for Connecticut purposes.
Q. The Form 1099-G reports the entire amount of the overpayment from last year’s Connecticut income tax return but I did not take a deduction on Schedule A of last year’s federal income tax return for the portion of my state tax refund that I contributed to charity (or used for paying use tax, etc.)
A. Use the State and Local Income Tax Refund Worksheet located in the federal Form 1040, Schedule 1 line 10 instructions, to determine how much of the overpayment to report on Line 10 of your federal return. You may also call the Internal Revenue Service at (800) 829-1040 for additional information regarding how to complete Line 10 of your federal return.
Q. I took the general sales tax deduction on Schedule A of my federal income tax return instead of the income tax deduction. Do I have to add back my income tax refund from the State on Line 10 of the federal income tax return?
A. If you did not take an income tax deduction on Schedule A of last year’s federal Form 1040, you do not have to add back the income tax overpayment on this year's federal return.
If you have any questions, use the State and Local Income Tax Refund Worksheet located in the federal Form 1040, Schedule 1 line 10 instructions, to determine how much of the overpayment to report on Line 10 of your federal return. You may also call the Internal Revenue Service at (800) 829-1040 for additional information regarding how to complete Line 10 of your federal return.
Q. I have a question regarding my Form UC-1099-G.
A. If you have a question regarding your Form UC-1099-G, please contact the Connecticut Department of Labor at (860) 263-6000.
These answers are intended to provide general information concerning frequently asked questions about a current position, policy, or practice associated with the taxes administered by the Connecticut Department of Revenue Services. They may include an informal interpretation of Connecticut tax law, but are not intended to serve as legal rulings.