I received Form 1099G "Statement of Tax Overpayment". What does this mean?

Question

The statement says "Amount reported to the IRS $339." What should I do? Even though it says that this is not a bill or notice of refund. Is there anyway I can find out exactly what this means? Do I have to put it on my return as earned or
un-earned income or is it a refund?? Please let me know if you need any more info.

Thanks.
Leslie H.

Answer 1

It means you've overpaid your tax. No actions needed from your end. You're either receive a cheque for the amount you've overpaid or they'll off-set the amount for your future taxes. There are many tax payers thus you will need to wait a little while before the cheque arrives should it arrive. This amount is not your income thus no filing is necessary.

Answer 2

If you itemized your deductions last year (2005) on Schedule A, then pick this amount up as "taxable refunds" on line 10 of your 2006 Form 1040.

Note that this is only income on the federal tax return. It is not taxable on the state tax return.

Answer 3

Judy is right here. Check your prior year state return and see if there was a refund of $339. If so AND if you itemized (using schedule A) for your federal return last year, then you will need to include the $339 on line 10 of your 1040 this year.

UNLESS you paid AMT last year, then there are other issues involved. If that is the case, then contact one of us.

Answer 4

If you itemized deductions for tax year 2005 and took a deduction for state income taxes paid then you must claim this as income for 2006.

If you did NOT itemize or if you did but didn't take a deduction for state income taxes paid, you can ignore the Form 1099-G as you do NOT have to claim it as income.

Answer 5

Was this the amount of your state refund last year? If so, then you'd only have to report it as income if you itemized last year and deducted state income tax,since then you would have over-deducted last year..

Answer 6

No it would not, in no way. The greater jobs that are created, the greater human beings pay taxes, the greater you may decrease taxes. we've no tax money because of the fact hundreds of may well be employed workers at the instant are squaddies spending fortunes to combat bush's oil wars, and then coming decrease back wounded and desiring guard the remainder of their lives. the wealthy hiring extraterrestrial beings to artwork on their residences and residences and not paying taxes for them; the wealthy conserving money off shore and warding off taxes; advertising each thing from China etc warding off taxes. we've those little tax leaks, like Walmart. approximately 0.5 the army, lots of the agriculture interior the rustic. Plug those up, and the tax costs can bypass down.