Individual income tax > Credits, subtractions, and additions
Form 1099-G – Refund issued to taxpayers
The Department of Revenue is required to provide 1099-G information to you by January 31 of the next calendar year. The Minnesota version of Form 1099-G reports your prior year’s state income tax refunds. Do not send your 1099-G with either your federal or state return. This form is only for informational purposes. If you went to a tax preparer in the prior year, they will have the information from that year’s return; however, you should bring them a copy of your 1099-G when you go to your preparer, to assure they have the correct refund amount.
Any state income tax refund included on line 10 of federal Form 1040 may be subtracted on the Minnesota return. Without this subtraction, the refund would be included twice on the state return: 1) when added back (on line 2) to Minnesota taxable income in the year of the federal deduction; and 2) when the refund was subsequently added back on the federal return.
Taxpayers who did not itemize on their prior year federal return are not required to add back their state refund on their current year federal return and will not have this Minnesota subtraction.
1099-Gs are issued to taxpayers who:
- itemized deductions on their prior year's federal return, and
- received a state income tax refund of $10 or more for an original or amended return processed / paid in the current tax year.
According to the IRS, a state income tax refund is the total of the taxpayer's withholding, estimated tax and return payments made during the calendar year, minus their state tax liability.
Note. The IRS goes by the calendar year the taxes were paid in, or the refund was issued, not the tax year involved. For example, 2008 state taxes paid in 2009 may be taken as a deduction on the 2009 Federal Schedule A, not the 2008 tax form.
To look up your 1099-G information, go to What’s my 1099G amount.
Calculating the 1099-G. Your 1099-G reflects your income tax refund which is generally your tax minus your withholding (or estimated payments). Some of the state refundable credits are not part of this calculation, including the military service credit (M99), child and dependent care credit (M1CD), K-12 education credit (M1ED), and the working family credit (M1WFC), which are based on the federal 1099-G instructions. Other credits such as the JOBZ jobs credit, cattle tuberculosis testing credit, etc., are considered part of the state refund and are not excludable from the 1099-G calculation.
Example: Mary has withholding of $900 and her tax is $300, she is eligible for a $700 working family credit and a $200 K-12 education credit. Her total Minnesota refund is $1,500. The amount reported on her 1099-G is $600 ($900 withholding minus the $300 tax). Her working family credit and the education credit are not considered part of her reported state refund, since no deduction was taken federally.
Property tax refund. You will not receive a 1099-G for the Property Tax Refund, and do not include it on federal Form 1040, line 10. However, refer to the Form 1040 instructions if you itemize on your federal return and take a deduction for property taxes paid.
Other offsets using Form 1099-G
You will still receive a 1099-G even if your refund was applied toward:
- a Revenue Recapture
- delinquent state taxes (A/R)
- the next year’s estimated taxes
- an additional tax charge (Schedule M15 for underpayment of estimated tax penalty), or
- donations to the nongame wildlife fund
Adjustments to your return. If you file a return and make a payment because you show tax owed, then we adjust/correct the return and issue a refund, your 1099-G will include the payment you made with your original filing, since this can be taken as an itemized deduction on the federal return. The payment sent will be treated like an “estimated” payment or withholding.
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