Form 1099-G - Entering State Income Tax Refund in Program

Your tax refund from a state or local government for the prior year may be considered taxable income if you itemized deductions on your prior- year federal return.

The opposite is also true: If you claimed the standard deduction instead, your prior-year state or local income tax refund is not taxable on this year’s federal return.

Generally, the state or local taxing authority will issue a Form 1099-G if you received a tax refund. However, many states are no longer mailing these forms to taxpayers.

To enter Form 1099-G in TaxAct:

  1. From within your TaxAct return (Online or Desktop), click Federal. On smaller devices, click the menu icon in the upper left-hand corner, then Federal
  2. Click State Income Tax Refund in the Federal Quick Q&A Topics menu and then click +Add Form 1099-G State Refund Document to create a new copy of the form and enter the information from your Form 1099-G, or click Review to review a form already created
  3. Once all forms have been entered and you are back on the screen titled State or Local Income Tax Refund - Document - Summary, click Continue and then click Yes if you want to determine what portion (if any) of the refund amount(s) entered is taxable on your return (if you imported the information from last year's return, click Yes to review the screens and ensure the calculation is correct)
  4. Enter or review the information from your prior-year federal return to determine the taxable amount of your state income tax refund. After you’ve entered the information, you’ll reach the State or Local Income Tax Refund - Taxable Refund screen, which will show the taxable portion (if any) of your prior year state income tax refund based on the entries on the previous screens

Additional Support

Understanding the State Refund Worksheet:

The State Refund Worksheet reflects the calculation of the amount (if any) of the state income tax refund received that would be taxable and transferred to Line 1 of IRS Schedule 1 (Form 1040).

To review the calculations and/or print the State Income Tax Refund worksheet:

  1. From within your TaxAct Online return, click Print Center in the left column.
  2. Click Custom
  3. Click the checkbox(es) to the left of Form 1040 State Refund - State Refund Worksheet (the top section contains individual forms or schedules and the bottom section contains documents or worksheets). You may need to scroll down in the section to locate the item. 
  4. Click Print and then click the PDF link. Click the printer or save icon (hover your mouse over the bottom of the PDF form).
If you see a message indicating you have not paid your return fees, click the View/Pay link, which will direct you through the Paper Filing steps. Continue through the screens until you have processed the payment for your product fees and then repeat the steps to print. 

  1. Start your TaxAct Desktop program
  2. Click the Forms button in the top left corner
  3. Expand the Federal folder and then the Worksheets folder
  4. Click '+' next to Form 1040 State Refund - State Refund Worksheet 
  5. Double click Federal Form 1040 State Refund 
  6. Click the pink Printer icon in the toolbar above the form 

In the print dialog box that appears you are able to choose if you wish to send the output to a printer or a PDF document.