Look up your 1099G/1099INT
To look up your 1099G/INT, you'll need your adjusted gross income from your most recently filed Virginia income tax return (Line 1, or the sum of both columns of Line 1 for a part-year return).
Note: We will not mail paper 1099G/1099INT forms to taxpayers who chose to receive them electronically unless we receive a request for paper copies of these forms from the taxpayer. We will automatically mail paper forms to taxpayers who did not opt to receive them electronically.
About your 1099G/INT
What is Form 1099G/INT?
Form 1099G/1099INT is a report of income you received from Virginia Tax during 2017. The IRS requires government agencies to report certain payments made during the year, because those payments are considered taxable income for the recipients. Virginia Tax must report any refund or overpayment credit amount issued during 2017 to individuals who claimed itemized deductions on their income tax returns for the year shown in Box 3 of the Form. We must also report any interest paid on refunds.
The IRS normally requires that refund and interest amounts be reported on two separate forms: Form 1099G (refunds and overpayments) and Form 1099INT (interest). To avoid the confusion that may be caused by sending multiple statements for the same tax year, we issue a single statement showing separate refund and interest amounts.
What should I do with this statement? Do I need to pay the amount shown?
The Form 1099G/1099INT is just a report from Virginia Tax of the income you received during 2017. It is not a bill, and you should not send any type of payment in response to the statement. If a professional preparer handles your taxes, you should give this statement to the preparer, along with your other tax information, such as W-2s. If you prepare your own taxes, you should review the federal return instructions for reporting state income tax refunds, or visit the IRS website for more information.
Why would I have to report my refund as income?
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 Virginia estimated tax payments they made during the year. Since this deduction reduces federal taxable income, 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.
Example: John Jones deducted $5,000 in state income tax on his 2015 federal return, based on the Virginia withholding amount from his W-2. When he filed his 2015 Virginia return, he found he was entitled to a refund of $1,000, which was issued on June 1, 2017. This means that he only paid $4,000 in state income taxes for 2015, rather than the $5,000 he claimed. Therefore, Mr. Jones will be required to report the difference of $1,000 (the amount of his refund) on his federal return for 2017.
I received a Virginia refund during 2017, but Virginia Tax applied the money to a bill for another year. Doesn't that mean this statement is wrong? Do I still have to report this as income?
Virginia law requires us to apply refunds or credits to outstanding bills. The application of funds doesn't change the fact that you claimed an overpayment for the year on your statement. Even though you didn't actually receive a check, an overpayment transaction took place, and you are subject to the same federal reporting requirements as if you had received a refund check.
I did show an overpayment on my 2016 return, but I had the money applied as a credit to 2017. Since I didn't get a refund, do I still have to report this?
A refund and a credit are simply different types of overpayment transactions. We must include any overpayment allowed on your 2016 return on our Form 1099G/1099INT. As a result, you are subject to the same federal reporting requirements as if you had received a refund check.
This statement says the refund was issued for 2015. I already reported that refund on my 2016 federal return. Can you correct the statement? If not, what should I do?
We are required to report refund transactions in the year they actually occur. Since your 2015 refund was issued in 2016, we cannot issue a Form 1099G/1099INT as if the transaction took place in 2015. You should contact the IRS to find out whether you should amend your 2016 federal return or take some other action to correct the reporting error.
This statement shows a refund of $1,500 for 2016. I did get a refund for that amount, but I amended my return a few months later, and had to pay $500 back. Shouldn't the statement say my net refund was $1,000?
Under federal law, Virginia Tax is required to report the actual refund or credit amount. We cannot net the amount against other transactions. Therefore, your Form 1099G/1099INT is correct as issued. For information on how to report the income and deduct your payment on your 2017 federal return, visit the IRS website.
This statement says the refund was issued for 2015. Why should I have to report that now? Why was a 2015 refund issued in 2017?
Our records show that a refund for 2015 was issued on your account during 2017, and that you claimed itemized deductions for 2015. The refund could have resulted from an amended return, or some other adjustment that was made to your account. Since the transaction took place in 2017, the income would be reported on your 2017 federal return. If you don't have a record of filing an amended Virginia return for 2015, or of resolving a claim or dispute related to your 2015 return during 2017, please contact a Customer Service representative at 804.367.8031, or write to us at PO Box 1115, Richmond, Virginia 23218-1115 for an explanation.
I have checked my records and I'm sure this statement is incorrect. What should I do?
Contact a Customer Service representative at 804.367.8031, or write to us at PO Box 1115, Richmond, Virginia 23218-1115 to request a letter of correction. Be sure to include your Social Security number, and explain why you believe the Form 1099G/1099INT is incorrect.
This statement shows a refund amount and an interest amount. What am I supposed to report as income?
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.