Report your state refund 1099-G on line 19 of Form 1040, Schedule 1

The IRS requires you to report a state income tax refund you received in the prior year as income on your federal return. The amount comes from box 2 of your 1099-G, which shows the state refund paid to you. You enter this amount on line 19 of Schedule 1 (Form 1040), labeled "State and local income tax refunds." Schedule 1 is the attachment to your main Form 1040 where you report other income sources.

You only report the refund if you itemized deductions in the year you received the refund. If you took the standard deduction that year, you do not report it now. This is because you got no tax benefit from paying the state tax in the first place — you deducted the standard amount instead. The refund is only taxable income if you actually deducted the state tax paid.

The 1099-G arrives by mail or email from your state tax authority, usually by January 31. If you do not receive one but know you got a refund, contact your state revenue department directly — they can reissue it or confirm the amount.

Key Takeaways

  • Report the amount from box 2 of your 1099-G on line 19 of Schedule 1 (Form 1040), not on the main 1040 itself.
  • You only report the refund if you itemized deductions in the prior year, not if you took the standard deduction.
  • The 1099-G is mailed or emailed by your state by January 31, and you need it before you file your federal return.
  • If your state refund was applied to next year's taxes instead of paid to you, it does not appear on a 1099-G and you do not report it.

Why you report a state refund as income

A state income tax refund is taxable to the IRS because of the way the tax code treats deductions. In the year you paid state income tax, you deducted that payment on your federal return — either as part of itemized deductions or as part of the standard deduction. That deduction reduced your federal taxable income. When the state refunds part of that tax, you are getting money back for an expense you already deducted, so the IRS treats the refund as income to even things out.

The key word is "if you itemized." If you took the standard deduction in the year you paid the state tax, you received no federal tax benefit from that payment in the first place. The refund is not taxable income because you never deducted the state tax. Many people miss this detail and report refunds they should not report, which can trigger an IRS notice.

How to find the correct amount on your 1099-G

Your state sends you a 1099-G with multiple boxes. Box 1 shows the total state income tax refund paid to you. Box 2 shows the portion of that refund that is taxable to the federal government. These are often the same amount, but not always.

Some states reduce box 2 if you had a prior-year state tax debt — a balance owed from an earlier year. The state may have applied part of your refund to that debt instead of paying it to you. The portion applied to the debt does not appear in box 2 and is not reported on your federal return. Only the amount actually paid to you, shown in box 2, gets reported on line 19 of Schedule 1.

If box 2 is blank or zero, you do not report anything on line 19. This can happen if the entire refund was applied to a prior debt or if the state determined the refund is not taxable under federal rules.

Where Schedule 1 fits into your Form 1040

Form 1040 is your main federal tax return. Schedule 1 is a separate form you attach to it when you have income sources beyond wages, interest, and dividends. Line 19 of Schedule 1 is specifically for state and local income tax refunds. After you fill in line 19, you carry the total from Schedule 1 to line 8 of Form 1040, where it combines with your other income to calculate your total income for the year.

If you use tax software, it usually handles this automatically. You enter the 1099-G information, and the software places it on the correct line. If you file by hand, you must attach Schedule 1 to your Form 1040 and make sure line 19 is filled in. The IRS will not process your return without Schedule 1 if you have income to report there.

What happens if you do not have a 1099-G

If you received a state refund but did not get a 1099-G by early February, contact your state revenue department. You can usually find a phone number or online form on the state's tax website. Have your Social Security number and the year of the refund ready. The state can tell you the exact amount and reissue the form if needed.

Do not guess at the amount. The IRS matches 1099-G forms filed by states against the amounts reported on federal returns. If your reported amount does not match the state's record, the IRS will send you a notice asking for an explanation. It is faster to get the correct 1099-G upfront than to deal with a mismatch later.

If the state confirms you received a refund but cannot issue a 1099-G for some reason, ask for written confirmation of the amount and date paid. Keep that documentation with your tax records in case the IRS asks.

State refunds applied to next year instead of paid to you

Some taxpayers choose to apply their refund to next year's estimated state tax instead of receiving it as a payment. If you did this, the refund does not appear on a 1099-G and you do not report it on your federal return. The state has not paid you money, so there is no income to report to the IRS.

When you file your state return the following year, that applied refund reduces the tax you owe. It shows up on your state return, not your federal return. Keep your state refund election confirmation or your prior-year state return showing the applied amount, in case you need to prove you did not receive a cash refund.

Frequently Asked Questions

Do I report the 1099-G if I took the standard deduction?

No. You only report a state refund if you itemized deductions in the year you paid the state tax. If you took the standard deduction, you received no federal tax benefit from the state tax payment, so the refund is not taxable income. Check your prior-year return to see which deduction method you used.

What if my 1099-G shows a different amount than the refund I actually received?

Contact your state revenue department immediately. The amount on the 1099-G should match what was paid to you. If it does not, the state may have made an error, applied part of the refund to a prior debt, or had a reason to adjust the taxable portion. The state can explain the difference and issue a corrected form if needed.

Can I amend my return if I forgot to report the 1099-G?

Yes. File Form 1040-X (Amended U.S. Individual Income Tax Return) for the year you forgot to report it. Add the 1099-G amount to line 19 of Schedule 1 on the amended return. The IRS may have already caught the mismatch and sent you a notice, but filing an amendment shows you are correcting it voluntarily.

What if I received a 1099-G but the state says I did not owe taxes that year?

This can happen if you moved to a different state or had a major life change. Contact the state that issued the 1099-G and explain your situation. They can clarify whether the refund is actually taxable or issue a corrected form. Do not ignore the 1099-G — the IRS will see it and expect you to report it unless the state corrects it.