Posted by srnotary_CA on 2/3/06 4:48pm
Msg #94041

Taxes 1099-G

Has anyone elseo gotten this. Apparently it is to pay federal income tax on your state taxes. When did they start taxing you on taxes you alredy paid and got a refund on?

Reply by DellaCa on 2/3/06 5:15pm
Msg #94066

Re: As long as I remember N/m

Reply by Brenda_NC on 2/3/06 6:06pm
Msg #94089

This happens if you itemized your last years tax return because you were able to deduct the taxes paid to the state on your Schedule A. If you did you took the standard deduction and did not itemize then you do not have to claim this as income on your taxes this year.

Brenda

Reply by Beth/MD on 2/3/06 6:09pm
Msg #94091

Re: Taxes 1099-G, Brenda_NC

Brenda how do you know so much about tax law? Are you an accountant? You always have a good answer.

Reply by Brenda_NC on 2/3/06 6:12pm
Msg #94092

Re: Taxes 1099-G, Brenda_NC

Beth, I have a degree in Accounting and I also worked for the IRS for a while auditing taxes.

Reply by Beth/MD on 2/3/06 6:35pm
Msg #94110

Re: Taxes 1099-G, Brenda_NC

AAAAAAAA, you're the dreaded auditor! JK... By the way, my taxes are in order

Reply by Anonymous on 2/4/06 12:32am
Msg #94180

Re: Taxes 1099-G, Brenda_NC

I am not getting my 1099's. Aren't they supposed to be to me by 1/31/06???

Reply by Brenda_NC on 2/4/06 8:03am
Msg #94196

Re: Taxes 1099-G, Brenda_NC

Company's are required to have the 1099's in the mail and postmarked by January 31. They do not have to make sure you receive them by January 31

Reply by Beth/MD on 2/4/06 8:49am
Msg #94199

Re: Taxes 1099-G, NO

They are supposed to be postmarked by 1/31.

Reply by Brenda_NC on 2/3/06 6:28pm
Msg #94104

Correction

Meant to say that if you took the standard deduction then you would not have to claim the 1099-G as income on this years taxes. Sorry.

Reply by Signing_Doc on 2/3/06 7:25pm
Msg #94120

State taxes....(thinking to myself....state taxes....state taxes).....
OH...That's right...that's something THE OTHER states pay.

We don't pay no STINKIN' State taxes here!!! :-)

(although they do get theirs in other ways).....

"Doc" Stuart

Reply by srnotary_CA on 2/3/06 11:47pm
Msg #94174

I am not sure if we itemized or not i know we did use our mortgage interest and taxes...Is that why?

Reply by John_NorCal on 2/4/06 12:26am
Msg #94177

Re: Correction

Brenda, don't you mean to say that you wil get a 1099-G if you get a refund from your state taxes? If you itemize in 2004 and get a refund from your state, that will generate a 1099-G which is reported on your 1040 as income, right?

Reply by JD_inMD on 2/4/06 6:43am
Msg #94193

Re: Correction

Some states send out 1099-G's just for getting a refund. It's up to the taxpayer to determine if any part of the refund received is taxable.From IRS pub 525 page 20 :

For 2005, the refund that you must include in income is limited to the excess of the tax you chose to deduct over the tax you did not choose to deduct.

Example 1. For 2004 you can choose an $11,000 state income tax deduction or a $10,000 state general sales tax deduction. You choose to deduct the state income tax. In 2005 you receive a $2500 state income tax refund. You must include $1000 of the refund in your income since you could have deducted $10,000 in state sales tax.

Reply by Brenda_NC on 2/4/06 7:47am
Msg #94195

Re: Correction

If you look in the 1040 instruction booklet for line 10 ( page 23 of instruction booklet) this says: " None of your refund is taxable if, in the year you paid the tax, you either (a) did not itemize deductions, or (b) elected to deduct state and loacal gerneral sales taxes instead of state and local income taxes.

Reply by JD_inMD on 2/4/06 9:24am
Msg #94209

Re: Correction

If you did itemize and take the deduction for state taxes witheld from pay, then read my earlier post. Obviously if you did not deduct state taxes in the year before you do not have anything to recapture.

Reply by Anonymous on 2/4/06 10:07am
Msg #94211

Re: Correction

Why are you just repeating what everyone else has already said? Can't comprehend what you read?

Reply by JD_inMD on 2/4/06 10:10am
Msg #94212

Re: Correction

If you want to blindly report the full amount listed on the 1099-G go ahead. I was making the point that not all of the tax listed on the 1099-G is necessarily taxable.

Reply by Beth/MD on 2/4/06 8:48am
Msg #94198

Re: Correction, John

If you read her original post/correction.....Isn't that what she said?

Reply by srnotary_CA on 2/4/06 8:21pm
Msg #94371

Re: Taxes 1099-G/Thanks Everyone n/m