Q: What is this statement?
A: The Division of Taxation must report any refund or overpayment credit amount issued during the taxable year, as well as any interest paid on refunds. Forms 1099-G and 1099-INT are reports of income you received from the Division of Taxation during the taxable year. The Internal Revenue Service (IRS) requires government agencies to report certain payments made during the year because those payments may be considered taxable income for Federal income tax purposes. The IRS requires that refund and interest amounts be reported on two separate forms: Form 1099-G and Form 1099-INT.
Note: These forms are not bills, and you should not send any type of payment in response to the statement(s).
Q: How does the 1099-G information affect my tax return?
A: In computing itemized deductions on your Federal tax return, you are allowed to deduct State income taxes paid during the year. Most people deduct the amount of income tax withheld, as shown on Form W-2, plus any New Jersey estimated tax payments they made during the year. If any part of the State tax deducted on the Federal return is later refunded, that amount has to be reported as taxable income for the year in which the refund is issued. This is because this deduction reduces the Federal taxable income.
Note: To find out if you are required to report this information on your Federal income tax return, contact the Internal Revenue Service or visit the IRS website.
Q: Why did I receive a Form 1099 from the State in the mail? I thought the form was not being mailed out this year?
A: The State of New Jersey no longer mails Form 1099-G, Certain Government Payments, to report the amount of a State tax refund a taxpayer received. This information will only be available online.
The State will continue to mail a paper Form 1099-INT, Interest Income, to any individual who received during the tax year interest paid on a tax refund or interest paid in connection with an unclaimed property claim. Form 1099-INT information is not available online.
Q: I claimed a New Jersey income tax refund on my return for 2013, but the Division applied the money to a bill for another year. Do I still have to report this as income?
A: New Jersey law requires the Division to apply refunds or credits to outstanding deficiencies. The 1099-G statement reflects your total overpayment amount for the 2013 tax year. The fact that some or all of your overpayment was applied to another year does not affect the amount shown on your 1099-G, and it should be reported on your 2014 Federal tax return if you are required to do so.
Q: I did show an overpayment on my 2013 return, but I had the money applied as a credit to 2014. Since I didn't get a refund, do I still have to report this?
A: A refund and a credit are simply two different types of overpayment transactions. The Division must include on Form 1099-G any overpayment allowed on your 2013 return regardless of whether the overpayment was issued as a refund check or as a credit. As a result, you are subject to the same Federal reporting requirements as if you had received a refund check.
Q: The Division applied my 2013 income tax refund to a bill I had with another State agency. Do I still have to report this as income?
A: Although you didn't receive a refund, since it was applied to your debt with another State agency or the IRS, an overpayment transaction took place and you are subject to the same Federal reporting requirements as if you had received a refund check.
Q: My 1099-G shows a refund of $150 for 2013. I made a $50 donation to a charitable organization on my return. Shouldn't the 1099-G show my refund was $100 since that was the amount of my refund check?
A: The Division is required to report the total overpayment amount allowed on your return. The total overpayment is the amount of your overpayment before any donations are elected to be made. You are subject to the same Federal reporting requirements as if you had received a check for the full amount of your overpayment.
Q: My 1099-G shows the refund was issued for 2012. I already reported that refund on my 2013 Federal return. What should I do?
A: The Division is required to report refund transactions in the year they actually occur. Since your 2012 refund was issued in 2014, we cannot issue a 1099-G as if the transaction took place in 2013. You should contact the Internal Revenue Service, or visit their website to find out how to correct the reporting error.
Q: My 1099-G shows a refund of $500 for 2014. I did get a refund for that amount, but I amended my return a few months later, and had to pay $300 back. Shouldn't the statement show my net refund was $200?
A: Under Federal law, the Division is required to report the actual refund or credit amount. We 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 2014 Federal return, you should contact the Internal Revenue Service, or visit the IRS website.
Q: My 1099-G shows the refund was issued for 2011. Why was a 2011 refund issued in 2014? Why should I have to report the amount now?
A: Our records apparently show that a refund for 2011 was issued on your account during 2014. Since the transaction took place in 2014, the income would be reported on your 2014 Federal return if required by the IRS. If you don't have a record of filing an amended New Jersey return for 2011, or of resolving a claim or dispute related to your 2011 return during 2014, you can contact the Division of Taxation for an explanation. Call our Customer Service Center at (609) 292-6400 or write to us at PO Box 266, Trenton, New Jersey 08695-0266.
Q: Why didn't I receive Form 1099-G for the property tax reimbursement (Senior Freeze) I received last year?
A: The IRS requires the issuance of Form 1099-G only for payments of refunds of state and local income taxes. The Senior Freeze and homestead benefit are considered to be refunds of property taxes.
Q: I have checked my records and I'm sure this statement is incorrect. What should I do?
A: You can contact the Division of Taxation to request a correction. Write to: PO Box 266, Trenton, New Jersey 08695-0266 and explain why you believe the Form 1099-G and/or 1099-INT is incorrect. Be sure to include the information necessary for us to provide a response (name, Social Security number, tax year, amounts, contact information, etc.).
Q: I received Form 1099-INT which shows an interest amount and Form 1099-G which shows a refund amount. What am I supposed to report as income?
A: 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. For information on Federal reporting requirements, visit the IRS website. The interest must also be included with any other taxable interest income you report on your New Jersey return, however, any amount shown on the Form 1099-G is exempt from New Jersey income tax and should not be reported on your New Jersey return.