Frequently Asked Questions: Substitute Form 1099G/1099INT
- 1099G 1099INT (Example).pdf
- Form 1099G/1099INT Online
- What is this statement?
- What should I do with this statement?
- Why did I receive this statement?
- Reporting tax refunds as income
- Refund not received
- Credit claimed, no refund issued
- Refund already reported to IRS
- Refund amount incorrect
- Questions about prior year refunds
- Form 1099G/1099INT issued in error
- Reporting refunds and interest received
The Form 1099G/1099INT is a report of income you received from the Department of Taxation during 2015. The Internal Revenue Service (IRS) requires government agencies to report certain payments made during the year, because those payments are considered taxable income for the recipients. The Department of Taxation must report any refund or overpayment credit amount issued during 2015 to individuals who claimed itemized deductions on their income tax returns for the year in Box 3. 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 and Form 1099INT. 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.
Beginning on January 15, all individual income taxpayers will have access to Form 1099G/1099INT as a portable document format (PDF) by using a new application on our website. Click here to use the application.
Individuals will need Adobe Acrobat Reader software which can be downloaded for free.
Taxpayers will also need the following information to access the 1099G/1099INT:
- Social security number of the taxpayer
- Date of birth
- Last name
- Tax year of the last filed Virginia return
- Line 1 of the last filed Virginia return (or the sum of both columns of line 1 for a part-year return)
- Spouse’s social security number, if a joint return was filed
The Form 1099G/1099INT can be viewed, printed or saved.
NOTE: When filing income tax returns for taxable years 2013 and 2014, individuals could elect to obtain Form 1099G/1099INT electronically. Taxpayers who made this choice will not be mailed paper 1099G/1099INT forms unless the Department receives a request for paper copies of these forms from the taxpayer. Paper forms will automatically be mailed to taxpayers who did not opt into the electronic delivery method.
The Form 1099G/1099INT is just a report of the income you received from the Department of Taxation during 2015. 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 web site at http://www.irs.gov/ for more information.
The Department's records show that we issued you a refund or overpayment credit during 2015 for the taxable year shown in Box 3, and that you claimed itemized deductions on your income tax return for that year. Therefore, you may be required to report the refund or credit as income on your 2015 federal income tax return.
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.
John Jones deducted $5,000 in state income tax on his 2013 federal return, based on the Virginia withholding amount from his W-2. When he filed his 2013 Virginia return, he found he was entitled to a refund of $1,000, which was issued on June 1, 2015. This means that he only paid $4,000 in state income taxes for 2013, 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 2015.
I received a Virginia refund during 2015, but the Tax Department 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 2014 return, but I had the money applied as a credit to 2015. 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 2014 return, whether issued as a refund or as a credit, 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 2013. I already reported that refund on my 2014 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 2013 refund was issued in 2015, we cannot issue a Form 1099G/1099INT as if the transaction took place in 2014. You should contact the Internal Revenue Service, or visit their website at http://www.irs.gov/. to find out whether you should amend your 2014 federal return or take some other action to correct the reporting error.
This statement shows a refund of $1,500 for 2014. 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, the Department 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 2015 federal return, visit the IRS website at http://www.irs.gov/.
This statement says the refund was issued for 2013. Why should I have to report that now? Why was a 2013 refund issued in 2015?
Our records apparently show that a refund for 2013 was issued on your account during 2015, and that you claimed itemized deductions for 2013. 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 2015, the income would be reported on your 2015 federal return. If you don't have a record of filing an amended Virginia return for 2013, or of resolving a claim or dispute related to your 2013 return during 2015, please contact a Customer Service Representative at (804) 367-8031, or write to us at Post Office Box 1115, Richmond, Virginia 23218-1115 for an explanation.
Contact a Customer Service Representative at (804) 367-8031, or write to us at Post Office 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 at http://www.irs.gov/.