Reply to Have you received 1099g from Virginia this year?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous]You will NOT get a 1099G from VA if you claimed the standard deduction on your fed taxes for 2018.  With the changes in tax laws, this is why I didn't receive a 1099G from VA for the first time in 10 years.  Why?  Because the amount of VA taxes does NOT impact the standard deduction if you took that for 2018.

If you itemized for 2018, one of your itemized deductions was the taxes you paid to VA.  If you then received a refund from VA, that means part of the state taxes you claimed as a deduction was refunded to you and was NOT taxed by the feds.  I'm tired so I might not be writing clearly.  If you have questions, call the VA tax office. I made my way to a very nice lady who patiently explained this to me.  Its simple, once you understand.[/quote]

How do they know how much of the state taxes you used to offset your federal tax liability?  For example, let's say your property tax was $9K and your state tax was $6K and you got a $1K refund.  On the federal return, you really only got the benefit of $1K of state income tax due to the SALT cap so even though you are getting a $1K refund you still have $5K of state tax that you did pay which more than fills up the amount above and beyond your property tax.[/quote]

There's a worksheet. In the case above the state tax refund will not be added back to your federal income because you didn't receive the benefit of deducting it last year due to the cap.  [/quote]

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