Income

I received a 1099-G for a state/local refund. Where do I enter this in the OLT software?

How to Enter a 1099-G for State or Local Refund in OLT Software

BS

Business Tax Specialist

Tax Expert

4 min read
Published on 1 month ago
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I Received a 1099-G for a State/Local Refund. Where Do I Enter This in the OLT Software?

If you received a Form 1099-G reporting a state or local income tax refund, credit, or offset, you can enter this information directly in the OLT (Online Taxes) software during your tax return preparation.

Steps to Add Form 1099-G in OLT Software

  • Log in to your OLT tax return (Online).
  • In the left menu (or tap the three dots in the top-right corner on mobile devices), click on Federal.
  • Under the Income section, click on the Show more button near Unemployment Income.
  • Click on Add or Edit next to Form 1099-G.
  • Follow the on-screen instructions to input the details from your Form 1099-G.

What Information Is Reported on Form 1099-G?

Form 1099-G is used to report:

  • State or local income tax refunds, credits, or offsets (Box 2)
  • Unemployment compensation
  • Reemployment Trade Adjustment Assistance (RTAA) payments
  • Taxable grants
  • Agricultural payments
  • Payments on a Commodity Credit Corporation (CCC) loan

Note: If the refund, credit, or offset is for a tax year other than the current tax year, you must enter that year in Box 3 using the format “YYYY” (e.g., “2020”).

Important Notes

  • You are not required to furnish a Form 1099-G or substitute statement to the recipient if you can determine that the recipient did not claim itemized deductions for the tax year giving rise to the refund, credit, or offset.
  • However, you must still file Form 1099-G with the IRS in all cases.
  • If interest of $600 or more was paid on the refund, you must also file Form 1099-INT.

Source:
Form 1099-G Instructions

Disclaimer: Always verify information with official Federal or State Department of Revenue Forms and Instructions.

Key Takeaways

  • Understanding tax deductions can significantly reduce your tax liability
  • Keep detailed records of all tax-related expenses and documents
  • Consult with a tax professional for complex situations

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