I didn't report 1099-G?

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KelVarnsen
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I didn't report 1099-G?

Post by KelVarnsen » Wed Feb 22, 2017 1:15 pm

Howdy all - hoping someone might be able to help me figure out if I can report a 1099-G next year instead of the year that I received it? I don't know how much information is needed but here's some background:

Tax Years 2014 and Prior
I had always gone with the standard deduction when filing my taxes, and my tax situation had never been complicated (young and still pretty fresh out of the parents' nest, no investments, no house ... basically nothing other than a W2 to worry about), so I always filed as soon as I could and never had issues that kept me up at night.

Tax Year 2015
I started itemizing my deductions for the first time as I had just purchased a home and most of my mortgage payments from 2015 was interest. Still filed by the end of January 2016 after receiving all of the forms I was expecting to receive. Still no issues and slept like a baby.

Tax Year 2016
- I kept on with the rhythm and filed by the end of January 2017 (a few weeks ago) as I had received all of the forms I had been expecting to receive.
- Here is the problem ( :confused ?) - the day after both my fed/state tax returns had been accepted, I received a form I'd never seen before (1099G) showing the amount of my state refund from tax year 2015. The instructions state that the amount reported on the Form 1099G must be reported in the year it was received ....... but I didn't report it and I already filed. My question is, will there be any major repercussions if I report the 1099G next year instead? If that is possible, then by the time the 2017 tax year comes around, I imagine I'd just have 2 to report (the 1099G that I received this month and the 1099G that I imagine I'll receive next year around this time).

Thanks all in advance and for all of the wisdom on this forum. :D

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BL
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Re: I didn't report 1099-G?

Post by BL » Wed Feb 22, 2017 1:31 pm

IRS has the document as well and if you itemized deductions you lied mis-stated how much state tax you paid. They will contact you in a year or so, and you will pay.

An amended 1040X is the nice and simple way of fixing errors. You can't fix it with next year's 1040.

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Ketawa
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Re: I didn't report 1099-G?

Post by Ketawa » Wed Feb 22, 2017 1:32 pm

Amend your return for tax year 2016.
Last edited by Ketawa on Wed Feb 22, 2017 1:34 pm, edited 1 time in total.

mcraepat9
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Re: I didn't report 1099-G?

Post by mcraepat9 » Wed Feb 22, 2017 1:34 pm

Great username, Kel.
Amateur investors are not cool-headed logicians.

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nisiprius
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Re: I didn't report 1099-G?

Post by nisiprius » Wed Feb 22, 2017 2:06 pm

Yes, and don't you feel like life is punishing you for being johnny-on-the-spot getting your taxes in! It's hard to know how long to wait, properly speaking you do need to keep track of your income well enough that you know whether you've received all your 1099s, including the 1099-G.

1) 1040X. I've done it several times. It's not hard. If you can get it in before April 15th this year then everything should be completely good.

Do it this year. Don't do it next year, it will just make things complicated. The 1040X, whenever you get around to filing it, should be for tax year 2016. If you have a 1099-G that is dated 2016, then be sure you report it on a tax form--in this case, a 1040X--that says 2016. Do not report income from a "2016" 1099-G on a "2017" tax form. You want everything to match up neatly at the IRS end.

2) When it's a simple procedural goof and you just want to know what to do--what forms to fill out, etc.--in order to pay the correct amount of taxes, try calling the IRS. I've done it several times. They've never yelled at me or lectured me, they've always acted as if all they cared about was having me pay the right amount of taxes, and they were perfectly willing to be helpful about it. "You want to pay us taxes? Great, anything we can do to help you..."

3) With regard to repercussions, with me the IRS has always acted as if they just want to be paid. They have not acted like sadists trying to be mean to me. When I have made small errors or failed to report small things--a good example being the time I just completely forgot to make a quarterly estimated payment--the usual "repercussion" has been to get a computer-printed letter in the mail from the IRS, telling me how much they want me to pay and why. There were interest and penalties, not a great big deal, just high enough to stop me from doing anything like that deliberately.

4) By the way... another bit of well-known taxmanship... if you ever find yourself pressed for time, know about the "automatic extension." You can get an extra four months to file just by sending in a form asking for it. You still have to pay by April 15th--you need to estimate your taxes, pay the estimated amount, and later on pay interest and penalty if you guessed too low and paid too little--but you can get extra time to sort through the paperwork.
Annual income twenty pounds, annual expenditure nineteen nineteen and six, result happiness; Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery.

KelVarnsen
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Re: I didn't report 1099-G?

Post by KelVarnsen » Wed Feb 22, 2017 2:09 pm

BL wrote:IRS has the document as well and if you itemized deductions you lied mis-stated how much state tax you paid. They will contact you in a year or so, and you will pay.

An amended 1040X is the nice and simple way of fixing errors. You can't fix it with next year's 1040.
Ketawa wrote:Amend your return for tax year 2016.
Thank you both for the quick response (and for saving me from further panic). I had no idea you could amend returns after already filing and having it accepted. Goes to show how green I am, I have much to learn. :mrgreen: Already looked up the form and what I need to do - looks simple enough (I hope). Thanks again, much appreciated.

mcraepat9 wrote:Great username, Kel.
Thank you from all of us at Vandelay Industries. :D

KelVarnsen
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Re: I didn't report 1099-G?

Post by KelVarnsen » Wed Feb 22, 2017 2:19 pm

nisiprius wrote:Yes, and don't you feel like life is punishing you for being johnny-on-the-spot getting your taxes in! It's hard to know how long to wait, properly speaking you do need to keep track of your income well enough that you know whether you've received all your 1099s, including the 1099-G.

1) 1040X. I've done it several times. It's not hard. If you can get it in before April 15th this year then everything should be completely good.

Do it this year. Don't do it next year, it will just make things complicated. The 1040X, whenever you get around to filing it, should be for tax year 2016. If you have a 1099-G that is dated 2016, then be sure you report it on a tax form--in this case, a 1040X--that says 2016. Do not report income from a "2016" 1099-G on a "2017" tax form. You want everything to match up neatly at the IRS end.

2) When it's a simple procedural goof and you just want to know what to do--what forms to fill out, etc.--in order to pay the correct amount of taxes, try calling the IRS. I've done it several times. They've never yelled at me or lectured me, they've always acted as if all they cared about was having me pay the right amount of taxes, and they were perfectly willing to be helpful about it. "You want to pay us taxes? Great, anything we can do to help you..."

3) With regard to repercussions, with me the IRS has always acted as if they just want to be paid. They have not acted like sadists trying to be mean to me. When I have made small errors or failed to report small things--a good example being the time I just completely forgot to make a quarterly estimated payment--the usual "repercussion" has been to get a computer-printed letter in the mail from the IRS, telling me how much they want me to pay and why. There were interest and penalties, not a great big deal, just high enough to stop me from doing anything like that deliberately.

4) By the way... another bit of well-known taxmanship... if you ever find yourself pressed for time, know about the "automatic extension." You can get an extra four months to file just by sending in a form asking for it. You still have to pay by April 15th--you need to estimate your taxes, pay the estimated amount, and later on pay interest and penalty if you guessed too low and paid too little--but you can get extra time to sort through the paperwork.
Wow, thank you so much for the wealth of knowledge and detailed input - this is so helpful and sincerely, sincerely appreciated. Lots of things I never would have thought of or known about on my own. I will definitely be keeping track of documents better going forward. I've been looking at the 1040X, and while I am a bit dense about taxes, it seems easy enough to complete on my own - am I thinking about it too simply? Would it be worth it to hire a tax professional?

Alan S.
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Re: I didn't report 1099-G?

Post by Alan S. » Wed Feb 22, 2017 2:52 pm

When you receive a state income tax refund that you itemized, it does NOT mean that the entire refund (1099G amount) is taxable on your current year return (or amended return in this case).

There is a tax benefit rule that states that you only have to include in income amounts of the refund that reduced your tax. Here are two major examples:

1) You itemized, but you itemized deductions were only 1,000 more than your standard deduction. Your state tax refund was 1,500. Only 1,000 of that refund reduced your taxes, so you only report 1,000 in income, not 1,500.

2) When you itemize state income taxes, it is because that amount is larger than your state and local sales tax deduction. If your sales tax deduction would have been 1200, and your SIT tax deduction was 1500, then only the first 300 of any refund would be taxable.

3) If both of the above situations apply, the amount included in income is the lower of the two.

There is a worksheet in Pub 525 that deals with the calculation. So yes, doing the amended return is a hassle, but with some work you may find that the income you have to add is much less than the 1099G.

kaneohe
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Re: I didn't report 1099-G?

Post by kaneohe » Wed Feb 22, 2017 2:59 pm

https://www.irs.gov/pub/irs-pdf/i1040gi.pdf

check out instructions/wksht for line 10 onp.24. not all of refund may be reportable or all may be

ruud
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Re: I didn't report 1099-G?

Post by ruud » Wed Feb 22, 2017 3:03 pm

Also, if you did your 2015 and 2016 taxes both with TurboTax and transferred the 2015 data to 2016, it already knew you itemized and got a state refund, so it already included it as income, no need to manually enter the 1099G. (I know this is the case for TurboTax since it applies to me, it may be the case for other tax preparation software as well). So before you go and file a 1040X, check to see if the amount is already reported on your filed 1099 1040 line 10.
Last edited by ruud on Wed Feb 22, 2017 4:27 pm, edited 2 times in total.
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jebmke
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Re: I didn't report 1099-G?

Post by jebmke » Wed Feb 22, 2017 3:05 pm

and here is a handy calculator to determine how much is taxable.

http://cotaxaide.org/tools/Refund%20Calculator.html

Make sure you complete the lines for 5a AND 5b
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IFRider
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Re: I didn't report 1099-G?

Post by IFRider » Wed Feb 22, 2017 3:08 pm

ruud wrote:so it already included it as income, no need to manually enter the 1099G. (I know this is the case for TurboTax since it applies to me, it may be the case for other tax preparation software as well). So before you go and file a 1099X, check to see if the amount is already reported on your filed 1099 line 10.
You mean 1040 line 10 correct? I'm asking because I'm struggling with this one also. There was no data reported on line 10 of my 1040, but I did get a 1099-g and I itemized.

jebmke
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Re: I didn't report 1099-G?

Post by jebmke » Wed Feb 22, 2017 3:13 pm

IFRider wrote:
ruud wrote:so it already included it as income, no need to manually enter the 1099G. (I know this is the case for TurboTax since it applies to me, it may be the case for other tax preparation software as well). So before you go and file a 1099X, check to see if the amount is already reported on your filed 1099 line 10.
You mean 1040 line 10 correct? I'm asking because I'm struggling with this one also. There was no data reported on line 10 of my 1040, but I did get a 1099-g and I itemized.
There should be a State Tax Refund worksheet that shows the amount and calculates the taxable amount.
When you discover that you are riding a dead horse, the best strategy is to dismount.

ruud
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Re: I didn't report 1099-G?

Post by ruud » Wed Feb 22, 2017 4:26 pm

IFRider wrote:
ruud wrote:so it already included it as income, no need to manually enter the 1099G. (I know this is the case for TurboTax since it applies to me, it may be the case for other tax preparation software as well). So before you go and file a 1099X, check to see if the amount is already reported on your filed 1099 line 10.
You mean 1040 line 10 correct? I'm asking because I'm struggling with this one also. There was no data reported on line 10 of my 1040, but I did get a 1099-g and I itemized.
Yes, sorry, meant 1040 line 10. Will edit post.
"A good plan, violently executed now, is better than a perfect plan next week."

Alan S.
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Re: I didn't report 1099-G?

Post by Alan S. » Wed Feb 22, 2017 4:50 pm

If a tax program automatically adds a state tax refund to income, you could be overtaxed.

The program probably could handle reducing the refund by amounts that would be covered by the standard deduction, but it would not know what your sales tax deduction might have been. While a program could conceivably use the optional table (I doubt any do), it would not know how much in large purchase sales taxes you could add to the table amount.

You would have to determine your sales tax deduction yourself and then determine the difference between the allowed SIT deduction and the sales tax deduction.

Good news is that if you elect the sales tax deduction due to a SIT Refund you do NOT have to amend Sch A for the year the deduction applies to. You just determine the amount of the refund that must be added to income the following year on line 10.

bluebolt
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Re: I didn't report 1099-G?

Post by bluebolt » Thu Feb 23, 2017 9:15 am

Alan S. wrote:If a tax program automatically adds a state tax refund to income, you could be overtaxed.

The program probably could handle reducing the refund by amounts that would be covered by the standard deduction, but it would not know what your sales tax deduction might have been. While a program could conceivably use the optional table (I doubt any do), it would not know how much in large purchase sales taxes you could add to the table amount.

You would have to determine your sales tax deduction yourself and then determine the difference between the allowed SIT deduction and the sales tax deduction.

Good news is that if you elect the sales tax deduction due to a SIT Refund you do NOT have to amend Sch A for the year the deduction applies to. You just determine the amount of the refund that must be added to income the following year on line 10.
Just had this with TurboTax 2016. Asked me a bunch of questions including about state sales tax to find that my taxable amount was reduced by $24. :sharebeer

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