- What is the Form 1099-G or Form 1099-INT?
- What should I do with this statement? Do I need to pay the amount shown?
- Why did I receive this statement?
- Why would I have to report my refund as income?
- What is an "overpayment"?
- I claimed a Maine refund on my last year's Maine return, but Maine Revenue Services applied the money to a bill for another year. Doesn't that mean this Form 1099-G is wrong? Do I still have to report this as income?
- I did show an overpayment on my Maine return that I filed last year, but I had the money applied as a credit to the next year's return. Since I didn't get a refund, do I still have to report this?
- This statement says my 2020 refund was issued in 2023. I already reported that refund on my 2021 federal return. Can you correct the statement? If not, what should I do?
- This statement shows a refund of $1,500 last year. I did get a refund for that amount, but I amended my return a few months later, and had to pay $500 back. Shouldn't this statement say my net refund was $1,000?
- This statement says the refund was issued for 2020. Why should I have to report that now? Why was a 2020 refund issued last year?
- I have checked my records and I'm sure this statement is incorrect. What should I do?
- Why does my Form 1099-G show use tax, voluntary contributions, or park pass purchases?
- I received a refundable child care credit last year. Is this amount included on my Form 1099-G?
- I received a refundable property tax fairness credit last year. Is this amount included on my Form 1099-G?
1. What is the Form 1099-G or Form 1099-INT?
Form 1099-G is a report of income tax refunds of $10 or more issued during the prior tax year, including overpayments carried to another tax period. Form 1099-G may also include interest payments less than $600.
Form 1099-INT is a report of interest payments of $600 or more that you received from Maine Revenue Services during the prior calendar year.
The Internal Revenue Service requires government agencies to report certain payments made during the year, because those payments may be considered taxable income for the recipients.
Maine Revenue Services must report any income tax refund or overpayment credit amount greater than or equal to $10 issued during the tax year to individuals who claimed itemized deductions on their income tax returns for the year.
- If you did not itemize deductions in the prior tax year, you can disregard the form.
- The Form 1099-G or Form 1099-INT is not a bill.
- The Form 1099-G or Form 1099-INT shows amounts that were already refunded to you during the prior calendar year.
Revised: April 2, 2024
2. What should I do with this statement? Do I need to pay the amount shown?
The Form 1099-G or Form 1099-INT is a report of income you received from Maine Revenue Services during the prior calendar year. It is not a bill. Do not send any type of payment in response to the statement. If a professional tax preparer handles your taxes, you should give this statement to the preparer, along with your other tax information, such as Forms W-2. If you prepare your own taxes, you should review the federal return instructions for reporting state income tax refunds or visit the Internal Revenue Service website at www.irs.gov for more information.
Revised: March 1, 2019
3. Why did I receive this statement?
Maine Revenue Services records show that you were issued a refund or overpayment credit during the prior calendar year, and that you may have claimed itemized deductions on your federal income tax return for that year. Therefore, you may be required to report the refund or credit as income on your federal income tax return for the current tax year.
Revised: February 3, 2021
4. Why would I have to report my refund as income?
If you itemize deductions on your federal income tax return (instead of using the standard deduction), you may include state income taxes paid during the year in your itemized deduction amount. The itemized deduction reduces federal taxable income. Therefore, if any part of the state income tax included in itemized deductions on the federal return is later refunded by the state, that amount generally must be reported as taxable income for the year in which the refund is issued.
For example: A taxpayer included state income tax ($2,000) in itemized deductions on their 2022 federal return. Then, during 2023, they filed a 2022 Maine income tax return and received an income tax refund in the amount of $700. In January 2024, MRS reports to the taxpayer and to the Internal Revenue Service the refund issued during 2023 totaling $700. This means that the taxpayer only paid $1,300 in state income taxes for 2022, rather than the $2,000 claimed. Therefore, the taxpayer will generally be required to report the difference of $700 on the federal return for 2023.
Revised: April 2, 2024
5. What is an "overpayment"?
The term “overpayment” as it relates to Maine income taxes is used to describe the amount by which your tax payments for the year exceed the tax due for the year. An overpayment may include:
- amounts that were refunded to you,
- interest paid to you,
- amounts that were carried forward to next year’s tax,
- amounts that were offset to cover other outstanding debts you may owe, and
- amounts you paid for use tax, voluntary contributions, and park pass purchases.
Maine Revenue Services is required to report the total amount of overpayment regardless of what it was used for.
Revised: April 2, 2024
6. I claimed a Maine refund on my last year’s Maine return, but Maine Revenue Services applied the money to a bill for another year. Doesn't that mean this Form 1099-G is wrong? Do I still have to report this as income?
The Form 1099-G is not wrong; you must still report the overpayment as income. The application of the refund to another balance doesn't change the fact that you had an overpayment for the year on your tax return. Even though you didn't actually receive a refund, an overpayment transaction took place, and you are subject to the same federal reporting requirements as if you had received a refund.
7. I did show an overpayment on my Maine return that I filed last year, but I had the money applied as a credit to the next year’s return. Since I didn't get a refund, do I still have to report this?
You must report the overpayment applied as a credit the same way you would report a refund. Both refunds and credits are considered overpayment transactions. The application of the overpayment to another tax year doesn't change the fact that you had an overpayment for the year on your tax return. Even though you didn't actually receive a refund, an overpayment transaction took place, and you are subject to the same federal reporting requirements as if you had received a refund.
8. This statement says my 2020 refund was issued in 2023. I already reported that refund on my 2021 federal return. Can you correct the statement? If not, what should I do?
Maine Revenue Services is required to report refund transactions in the year they occur. Since your 2020 refund was issued in 2023, we cannot issue a Form 1099-G as if the transaction took place in 2021. You should contact the Internal Revenue Service or visit their website at www.irs.gov to find out whether you should amend your 2021 federal return or take some other action to correct the reporting error.
Revised: April 2, 2024
9. This statement shows a refund of $1,500 last year. I did get a refund for that amount, but I amended my return a few months later, and had to pay $500 back. Shouldn't the statement say my net refund was $1,000?
Federal law requires Maine Revenue Services to report the actual refund or credit amount. We cannot net the amount against other transactions. Therefore, your Form 1099-G is correct as issued. For information on how to report the income and deduct your payment on your federal return, contact the Internal Revenue Service, or visit their website at www.irs.gov.
Revised: March 1, 2019
10. This statement says the refund was issued for 2020. Why should I have to report that now? Why was a 2020 refund issued last year?
Our records show that a refund for 2020 was issued on your account last year, and that you may have claimed itemized deductions for 2020. Since the refund was issued during 2023, the income would be reported on your 2023 federal return. If you don't have a record of receiving a refund for 2020, email taxpayerassist@maine.gov
Revised: April 2, 2024
11. I have checked my records and I'm sure this statement is incorrect. What should I do?
Send an e-mail to: income.tax@maine.gov to request a correction. Be sure to include your social security number and explain why you believe the form is incorrect.
12. Why does my Form 1099-G show use tax, voluntary contributions, or park pass purchases?
You indicated on your income tax return for the year shown on your Form 1099-G that you owed Maine use tax, you purchased one or more Maine park passes, or you elected to voluntarily contribute money to one or more of the following organizations on Schedule CP:
- Maine Endangered and Nongame Wildlife Fund (Chickadee Check-off);
- Maine Children’s Trust Incorporated;
- Companion Animal Sterilization Fund;
- Maine Military Family Relief Fund;
- Maine Veterans' Memorial Cemetery Maintenance Fund;
- Maine Public Library Fund;
- Maine Children's Cancer Research Fund; or
- Emergency Food Assistance Program Fund.
These amounts are overpayments of tax and must still be reported to you on Form 1099-G. The fact that you used the refund to pay use tax, to purchase park passes or to make voluntary contributions doesn't change the fact that you had an overpayment for the year on your tax return. Even though you may not have actually received a refund, an overpayment transaction took place, and you are subject to the same federal reporting requirements as if you had received a refund.
Revised: April 2, 2024
13. I received a refundable child care credit last year. Is this amount included on my Form 1099-G?
Refundable child care credit amounts are not included in Box 2 on the Form 1099-G. The refundable credit is generally not an overpayment of tax; for example, child care payments used to qualify for the refundable child care credit are not used to reduce income on the federal return.
The entire refund amount, including the refundable credit, is included in the Refund Issued box; however, the refundable portion of the credit has been subtracted from Box 2. (For example: a taxpayer who received an income tax refund last year of $400, of which $100 was a refundable child care credit, would receive a Form 1099-G that shows $400 in the Refund Issued box and $300 in Box 2.) Thus, only the $300 amount may be reportable as income on your federal return.
Revised: April 2, 2024
14. I received a refundable property tax fairness credit last year. Is this amount included on my Form 1099-G?
Your 2023 Form 1099-G does not include the refundable property tax fairness credit you received. However, this amount may be subject to recapture on your 2023 federal income tax return if you itemized deductions on your 2022 income tax form and included property tax payments in your itemized deductions that were also used to calculate your 2022 Maine property tax fairness credit. For information on whether you need to report this amount on your federal return, contact the Internal Revenue Service, or visit their website at www.irs.gov.
Revised: April 2, 2024