Form 1099-G

What is Form 1099-G?
Form 1099-G, also titled “Certain Government Payments” is a form that reports a state or local income tax refund from the previous year. If you were in the United States during calendar year 2012 and were employed, filed a state income tax form in 2013 for the 2012 calendar year and received a refund, that information should be reported on form 1099-G.

Why is this important? You need to report all US-sourced income for 2013, including state (not federal) income tax refunds. GLACIER TAX PREP collects the information from form 1099-G and includes it on federal form 1040NR EZ or 1040NR.

Obtaining Your Form 1099-G
Many states issue form 1099-G in late January, at around the same time you receive Form W-2, Wage and Tax Statement. But New York State does not issue paper 1099-G. If you filed a New York State tax return last year for calendar year 2012, and received a refund, there is a very easy way to obtain an on-line 1099G.

Click on this link:http://www.tax.ny.gov/pit/file/1099g.htm
Select: “get your form online, using our 1099-G online service “
Follow the instructions on the screen. If you are then prompted to select year, choose 2013.

GLACIER TAX PREP and Entering Data About New York State Form 1099-G
A number of students have reported difficulty in entering the requested data about form 1099-G in GLACIER TAX PREP. For students who print form 1099-G from New York State, reporting a 2012 state income tax refund that was paid in 2013, the information on the form does not seem to match the questions GLACIER TAX PREP asks students to complete. This problem applies only to students and scholars who filed a New York State tax return for calendar year 2012 and received a refund.

The ISSS contacted GLACIER TAX PREP for guidance, and here is their reply:

If you print Form 1099-G from New York State, it will look different from the Form 1099-G on the screen in GLACIER TAX PREP. Report the amount in the Form 1099-G box entitled "Amount reported to the IRS" in GLACIER TAX PREP box 2 (State and local tax refunds, credits or offsets). Enter the state of your payer (your former employer) “New York” from the drop-down menu. Enter "0" in GLACIER TAX PREP box 4 (federal income tax withheld).

GLACIER TAX PREP will not report 1099-G Income for Students From India
Students from India who filed a state tax return for calendar year 2012, and who use GLACIER TAX PREP to complete their 2013 income tax returns, will note that GLACIER TAX PREP does not print their 1099-G refund amount on line 4 of the 1040NR EZ.

It's not a mistake, but the explanation is a bit complicated. F-1 and J-1 students from India who have been in the United States for five or fewer years are able to take a standard deduction on their US income tax forms, as part of the US-India tax treaty.

This standard deduction is entered on line 11 of form 1040NR EZ. All other foreign nationals, when completing line 11, must write the amount of any state and local tax withheld as it appears in boxes 17 and 19 of their W-2 forms.

So if you are a student from India, then last year, if you were filing your 2012 1040NR EZ, you reported a standard deduction on line 11, rather than state and local tax withheld. Therefore, since you did not itemize your state and local taxes withheld a year ago on your 2012 federal income tax form, it is not taxable. This means that you are not required to show your 1099-G amount as income on line 4 of the federal form. But, when you fill out the 2013 New York State IT 203, you DO report your 1099-G income on line 4 of IT 203. However, you are then able to subtract the same amount on line 24 of the form.

Last Updated: 8/28/14