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Frequently Asked Questions About Form 1099-G and Form 1099-INT

Note: These questions are intended to help you prepare your individual income tax return if you received a Form 1099-G because a state or local tax refund was reported to the Internal Revenue Service (IRS) or a Form 1099-INT was reported to the IRS for interest paid on a state or local tax refund.

Form 1099-G

Form 1099-INT

 

Form 1099-G

What is a Form 1099-G and why did I receive one from the Department of Revenue?

Form 1099-G is a report of income you received from the Department of Revenue during the calendar year. The Internal Revenue Service (IRS) requires government agencies to report to the IRS certain payments made during the year because those payments are considered gross income to the recipient. The Department must report any refund or overpayment credit amount issued during the year to individuals who claimed itemized deductions on their federal income tax return.

What should I do with the Form 1099-G I received?

Form 1099-G should be used to calculate your federal adjusted gross income. On the State return (“Form D-400”), the amount of state and local tax refunds reported on the federal return should be entered on the appropriate line of Form D-400 Schedule S (Line 7 for tax year 2018).

Why is the amount on my Form 1099-G different than the refund I received?

The amount of refund shown on your Form 1099-G could be different from the amount of refund you received for any of the following reasons:

  • You reported consumer use tax on your D-400

  • You made a contribution to the NC Nongame and Endangered Wildlife Fund, the NC Education Endowment Fund, or the NC Breast and Cervical Cancer Control Program

  • You chose to apply a portion of your overpayment toward the following year’s estimated tax

  • A portion of your overpayment was offset to a prior tax year or external agency having a claim against your refund

  • You received interest which is reported separately on a Form 1099-INT

How was the amount on my Form 1099-G calculated?

In general, Form 1099-G reports the amount of refund you received from a prior tax year. In most cases, this is the sum of your North Carolina withholding and/or other prior payments (i.e. estimated taxes) less North Carolina tax due.

See ‘Why is the amount on my Form 1099-G different than the refund I received?’ above.

I did not receive a refund. Why am I receiving a Form 1099-G?

  • Although you did not receive a refund, you had an overpayment of taxes that was applied to one or more of the following:

  • Consumer use tax

  • Contribution to the NC Nongame and Endangered Wildlife Fund, the NC Education Endowment Fund, or the NC Breast and Cervical Cancer Control Program

  • A portion of your overpayment was applied to the following year's estimated tax

  • Liability for another tax year or an external agency that has a claim against your refund

Why do I not receive a Form 1099-G every year?

You will not receive a Form 1099-G from the Department in the following circumstances:

  • Your overpayment was less than $10

  • You did not itemized your deductions on the federal return

What line on the tax return do I enter the information from my Form 1099-G?

The information on your Form 1099-G is first entered on your federal return and is used to calculate your federal adjusted gross income. On the State return, the amount of state and local tax refunds reported on the federal return should be entered on the appropriate line of Form D-400 Schedule S (Line 7 for tax year 2018).

I received a Form 1099-G from a state other than NC. Is this taxable to NC?

If the Form 1099-G you received reflects a state or local tax refund that was reported to the IRS and the income is included in federal adjusted gross income, the income is deductible (not taxable) on the NC individual income tax return, even if the refund was issued by another state.

See “What line on the tax return do I enter the information from my Form 1099-G,” above.

Why isn’t there withholding on my Form 1099-G?

A Form 1099-G issued by the Department does not include withholding because the form reports an overpayment of taxes. No tax has been withheld on the overpayment.

I received a Form 1099-G after I filed my return. What do I do?

If you received a Form 1099-G after filing your return, you should file an amended federal and State income tax return.

When are Form-1099-Gs mailed?

The Department is required by the IRS to issue Forms 1099-G no later than January 31 of each year. The exact mailing date varies each year.

I have misplaced my Form-1099-G. What should I do?

To request a duplicate Form 1099-G, contact the Department at 1-877-252-3052. Allow two weeks to receive the form.

I have checked my records and determined the amount reported on my Form 1099-G is incorrect. What should I do?

To request a corrected Form 1099-G, contact the Department at 1-877-252-3052. Allow two weeks to receive the form.

 

Form 1099-INT

Why did I receive a Form 1099-INT from the Department of Revenue?

The Internal Revenue Service (IRS) requires the Department to issue Form 1099-INT to taxpayers that received interest of $600 or more on refunds paid during the tax year.  While the IRS does not require the Department to issue Form 1099-INT to taxpayers receiving refund interest of less than $600, all interest received on refunds is taxable and must be included in federal adjusted gross income.

What should I do with the Form 1099-INT I received?

Use Form 1099-INT in the calculation of your federal adjusted gross income.

What should I do if I received interest on a refund from the Department, but did not receive Form 1099-INT?

Interest received on your refund is taxable and must be included in federal adjusted gross income regardless of the amount.  The amount of interest paid on your refund is reported on the refund check.  If you did not keep a record of the amount of refund interest received, you should contact the Department, at 1-877-252-3052 to determine the amount of refund interest received during the tax year.  Include the amount of refund interest received in the calculation of your federal adjusted gross income.

On what line of my tax return do I enter refund interest received from the Department?

Interest income must be reported on the appropriate line of your federal return and included in federal adjusted gross income.  Federal adjusted gross income is the starting point of the NC return and is reported on Form D-400, Line 6.

Why do I not receive a Form 1099-INT every year?

Beginning in tax year 2018, you will only receive a Form 1099-INT from the Department if you received refund interest of at least $600.  If you did not receive refund interest of $600 or more during 2018, you will not receive a Form 1099-INT from the Department.

I received a Form 1099-INT from a state other than NC. Is this taxable to NC?

If the interest was received while a resident of NC, the income is taxable to NC.

Why isn’t there withholding on my Form 1099-INT?

The Department does not withhold taxes on the payment of refund interest.

I received a Form 1099-INT after I filed my return. What do I do?

If you received a Form 1099-INT after filing your return, you should file an amended federal and State return.

When are Form 1099-INTs mailed?

The Department is required by the IRS to issue Forms 1099-INT no later than January 31 of each year. The exact mailing date varies each year.

I have misplaced my Form 1099-INT. What should I do?

To request a duplicate Form 1099-INT, contact the Department at 1-877-252-3052. Allow two weeks to receive the form.

I have checked my records and determined the amount reported on my Form 1099-INT is incorrect. What should I do?

To request a corrected Form 1099-INT, contact the Department at 1-877-252-3052. Allow two weeks to receive the form.