Form 1099-G

The Internal Revenue Service (IRS) requires the New Hampshire Department of Revenue Administration to report, on form 1099-G, the amount of any refund, credit carryover, or offset issued during the year, as these amounts may be taxable income to the recipient. If you have deducted state taxes paid on your federal income tax return, you may be required to report any refund, credit carryover, or offset as income on your federal income tax return for the year in which it was received, credited or offset against taxes, interest, penalties or other balances due.

When you deduct state taxes on your federal income tax return, whether paid through estimated tax payments, extension payments, or return payments, your federal taxable income was reduced. If any part of the tax deducted from federal income was later refunded, credited, or used as an offset for previous or future tax periods, you may be required to report this amount as federal income for the year in which it was received, because that income was deducted and, therefore, not taxed as income for federal income tax purposes.

An offset is the amount that was applied to applicable taxes, interest, penalties or other balances due.

No. The 1099-G is a report of refunds, credits, or offsets you received from the New Hampshire Department of Revenue Administration. 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 the 1099-G to the preparer, along with your other tax information. If you prepare your own taxes, you should review the federal return instructions for reporting state tax refunds or visit the IRS website at www.irs.gov for more information.

Send a copy of the 1099-G, along with an explanation as to why you believe it is incorrect to Taxpayer Services, PO Box 3306, Concord, NH 03302-3306. The Department will review your request and issue a corrected 1099-G if we determine the original to be incorrect.

Yes. The year to which the funds were applied does not change the fact that you received a refund on your New Hampshire Interest and Dividends Tax return. You are subject to the same federal reporting requirements as if you had received a refund check.

Example: During the year 20X1, a taxpayer made estimated tax payments of $2000 for New Hampshire Interest and Dividends Tax. The taxpayer deducted this amount as state taxes paid on the federal return for the year 20X1. In the next year, 20X2, the taxpayer filed an Interest and Dividends Tax return for 20X1, showing a total tax of $1800. This resulted in a $200 overpayment, which the taxpayer chose to carry over to the following year, 20X2. The taxpayer will receive a 20X2 1099-G from the New Hampshire Department of Revenue Administration showing the credit carryover. The $200 may have to be included in the federal taxable income in 20X2.

Note: If during the year, New Hampshire Interest & Dividends Tax returns for multiple years are filed claiming various over-payments, one 1099-G will be issued for the year and will list all refunds and credit carryovers on separate lines by tax period.