Form 1099-G is an income statement from the government, not a bill. This income is considered taxable and must be included on your federal and state returns.
DOR must report any refund, credit or offset of state and county income made to individuals who claimed itemized deductions on their federal income tax returns as well as any interest paid.
DOR cannot net the amount 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, review IRS 1099-G information.
Unemployment
Unemployment compensation is taxable on both federal and state tax returns.
If you received unemployment compensation, use the 1099-G issued by the Department of Workforce Development and include it in your tax return.
FAQ
DOR's records show that we issued you a refund or overpayment credit for the taxable year shown in Box 3. You may be required to report the refund or credit as income on your federal income tax return.
You may have to report a state refund received in the tax year as income if you claimed itemized deductions on your federal income tax return for a previous tax year. Review the federal return instructions for reporting state tax refunds if you prepare your taxes, or visit the IRS website for more information.
Form 1099-G statements are usually mailed around Jan. 1. If you haven't received a statement by Feb. 1, message us through INTIME or contact us by phone.
Yes. Message us through INTIME or contact us by phone. Have the correct information on hand and be prepared to explain why you believe what you received is incorrect.
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. You are still required to report the interest as income even if the refund is not reportable as income. For information on federal reporting requirements, visit the IRS website.
Indiana law requires refunds to be applied to outstanding billings or other agency offsets. The application of funds doesn't change the fact that you claimed an overpayment for the year on your tax return. Even though you didn't actually receive money, an overpayment transaction took place, and you are subject to the same federal reporting requirements as if you had received a refund.
A refund and a credit are simply different types of overpayment transactions. We must include any overpayment allowed on your tax return, whether issued as a refund or as a credit, on your Form 1099-G. As a result, you are subject to the same federal reporting requirements as if you had received a refund check.
DOR is required to report refund transactions in the year they actually occur. Since your previous tax year refund was issued in the current year, DOR cannot issue a Form 1099-G as if the transaction happened in a previous year. Contact the Internal Revenue Service to determine whether you should amend your federal return or take other action to correct the reporting error.
