Virginia Form 1099-G

[PPECPA]

I have a client that received a form 1099-G from the Department of Taxation of the state of Virginia.  No idea what this is for and if the amount is reportable.  Can anyone advise if the State of Virginia issued stimulus payments or something similar to the citizens of the state in 2022?

Any help would be appreciated.

PPECPA 

[biker]

It's a refund of state taxes and maybe taxable.

Need your help on a similar issue.  My brother who just died, I'm his tax preparer, has a Viginia state tax refund.  While I know the amount from his last year's tax return, I don't have the Form 1099-G, that list the Federal Id. number.  Can anyone just provide me the number? 

Thanks

Dick

[sjrcpa]

VA sent out up to $250 per taxpayer. 

It's taxable if and to the extent any other state tax refund is.

[sjrcpa]

@PPECPA Please provide the EIN on that 1099-G to @biker 

[PPECPA]

Originally I thought it was the state income tax refund **bleep** the 2021 tax return.

Thanks anyway Biker!

[PPECPA]

The federal ID number I have on my 1099-G for the Great State of Viriginia from my client is:

Federal ID 54-6001734

Good to go!

[PPECPA]

Thanks SJRCPA

That's what I thought.  The amount if $500 and said client if MFJ so it makes sense.  Reporting as miscellaneous income not subject to Soc. Sec.

Thanks again!

[sjrcpa]

Don't. It is a state tax refund. i.e. you had to have a 2021 VA tax liability of at least $250 to get the $250. 

Treat it like any other state tax refund. It may not be taxable.

[rbynaker]

YMMV but I'm finding very few of these that are taxable.  Either the client didn't itemize in 2021 (so no taxable recovery) or they hit the SALT cap in 2021 (so no tax benefit).

If it's only the $500 ($250) on the form that likely means they itemized and had a VA balance due for 2021 so then you *might* have to allocate the refund between amounts paid/withheld in 2021 and amounts paid in 2022 (but you're likely already not taxable because of the paragraph above).

Rick (in VA)

[PPECPA]

Agreed!

It matches I input this as a Tax Refund for the State of Virginia!

Good to go!

thanks