Q. What is this statement?
A. Forms 1099-G and 1099-INT are reports of income you received from the Division of Taxation during 2008. The Internal Revenue Service (IRS) requires government agencies to report certain payments made during the year, because those payments are considered taxable income for the recipients. The Division of Taxation must report any refund or overpayment credit amount issued during 2008 to individuals who claimed itemized deductions on their income tax returns for the year. We must also report any interest paid on refunds. The IRS requires that refund and interest amounts be reported on two separate forms: Form 1099-G and Form 1099-INT.


Q. What should I do with this statement? Do I need to pay the amount shown?
A. Forms 1099-G and 1099-INT are reports of income you received from the Division of Taxation during 2008. They are not bills, and you should not send any type of payment in response to the statement(s). If a professional preparer handles your taxes, you should give the statement(s) to the preparer along with your other tax information, such as W-2s. If you prepare your own taxes, you should review the Federal return instructions for reporting State income tax refunds, or visit the IRS www.irs.gov for more information

Q. Why did I receive this Form 1099-G statement?
A. Forms 1099-G and 1099-INT are reports of income you received from the Division of Taxation during 2008. They are not bills, and you should not send any type of payment in response to the statement(s). If a professional preparer handles your taxes, you should give the statement(s) to the preparer along with your other tax information, such as W-2s. If you prepare your own taxes, you should review the Federal return instructions for reporting State income tax refunds, or visit the IRS www.irs.gov for more information.

Q. Why did I receive this Form 1099-G statement?
A. The Division’s records show that we issued you a refund or overpayment credit during 2008 for the taxable year shown in Box 3. If you claimed itemized deductions on your Federal income tax return for that year, you may be required to report the refund or credit as income on your 2008 Federal income tax return.

Q. Why would I have to report my refund as income?
A. In computing itemized deductions on your Federal tax return, you are allowed to deduct State income taxes paid during the year. Most people deduct the amount of income tax withheld, as shown on Form W-2, plus any New Jersey estimated tax payments they made during the year. Since this deduction reduces Federal taxable income, if any part of the State tax deducted on the Federal return is later refunded, that amount has to be reported as taxable income for the year in which the refund is issued.

A. In computing itemized deductions on your Federal tax return, you are allowed to deduct State income taxes paid during the year. Most people deduct the amount of income tax withheld, as shown on Form W-2, plus any New Jersey estimated tax payments they made during the year. Since this deduction reduces Federal taxable income, if any part of the State tax deducted on the Federal return is later refunded, that amount has to be reported as taxable income for the year in which the refund is issued.

Q. I claimed a New Jersey income tax refund on my return for 2007, but the Division applied the money to a bill for another year. Do I still have to report this as income?
A. New Jersey law requires us to apply refunds or credits to outstanding bills. The application of funds doesn't change the fact that you claimed an overpayment for the year on your 2007 return. Even though you didn't actually receive a check, an overpayment transaction took place, and you are subject to the same Federal reporting requirements as if you had received a refund check in 2008.

Q. I did show an overpayment on my 2007 return, but I had the money applied as a credit to 2008. Since I didn't get a refund, do I still have to report this?
A. A refund and a credit are simply different types of overpayment transactions. We must include on Form 1099-G any overpayment allowed on your 2007 return, whether issued as a refund or as a credit. As a result, you are subject to the same Federal reporting requirements as if you had received a refund check.

Q. The Division applied my 2007 income tax refund to a bill I had with another State agency. Do I still have to report this as income?
A. Having your refund applied to your debt with another State agency or the IRS doesn't change the fact that you claimed an overpayment for the year on your tax return. Although you didn't receive a check, an overpayment transaction took place, and you are subject to the same Federal reporting requirements as if you had received a refund check.

Q. This statement shows a refund of $150 for 2007. I did have an overpayment for that amount, but I made a $50 donation to a charitable organization on my return. Shouldn't the statement say my refund was $100 since that was the amount of my refund check?
A. The Division is required to report the total overpayment amount allowed on your return; even though you contributed part of your overpayment to a charitable organization. Your donation doesn't change the amount you claimed as an overpayment for the year on your tax return. You are subject to the same Federal reporting requirements as if you had received a check for the full amount of your overpayment.

Q. This statement says the refund was issued for 2006. I already reported that refund on my 2007 Federal return. What should I do?
A. We are required to report refund transactions in the year they actually occur. Since your 2006 refund was issued in 2008, we cannot issue a Form 1099-G as if the transaction took place in 2007. You should contact the Internal Revenue Service, or visit their www.irs.gov to find out what action you should take to correct the reporting error..

Q. This statement shows a refund of $500 for 2007. I did get a refund for that amount, but I amended my return a few months later, and had to pay $300 back. Shouldn't the statement say my net refund was $200?
A. Under Federal law, the Division is required 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 2008 Federal return, visit the IRS www.irs.gov.

Q.This statement says the refund was issued for 2005. Why should I have to report that now? Why was a 2005 refund issued in 2008?
A. Our records apparently show that a refund for 2005 was issued on your account during 2008. Also, you claimed itemized deductions on your Federal income tax return for 2005. Since the transaction took place in 2008, the income would be reported on your 2008 Federal return. If you don't have a record of filing an amended New Jersey return for 2005, or of resolving a claim or dispute related to your 2005 return during 2008, please call our Customer Service Center at (609) 292-6400, or write to us at PO Box 266, Trenton, New Jersey 08695-0266 for an explanation.

Q. Why didn't I receive Form 1099-G for the homestead rebate I received last year?
A. The IRS requires the issuance of Form 1099-G only for payments of refunds of state and local income taxes. The homestead rebate, property tax reimbursement, FAIR rebate, and NJ SAVER rebate are considered to be refunds of property taxes.

Q. I have checked my records and I'm sure this statement is incorrect. What should I do?
A. write to us at PO Box 266, Trenton, New Jersey 08695-0266, to request a correction. Be sure to include your social security number, and explain why you believe the Form 1099-G and/or 1099-INT is incorrect.

Q. I received Form 1099-INT which shows an interest amount and Form 1099-G which shows a refund amount. What am I supposed to report as income?
A. You may need to report both amounts as income. If so, the interest would be included with the other interest income you report on your Federal return. For information on Federal reporting requirements, visit the IRS web site The interest must also be included with any other taxable interest income you report on your New Jersey return, however, any amount shown on the Form 1099-G is exempt from New Jersey gross income tax and should not be reported on your return.