Relay-Version: version B 2.10 5/3/83; site utzoo.UUCP Posting-Version: version B 2.10.1 6/24/83; site brl-vgr.ARPA Path: utzoo!watmath!clyde!burl!ulysses!harpo!seismo!brl-vgr!wmartin From: wmartin@brl-vgr.ARPA (Will Martin ) Newsgroups: net.taxes Subject: 1099G & State Tax Refunds Discussion Message-ID: <2429@brl-vgr.ARPA> Date: Mon, 12-Mar-84 13:41:16 EST Article-I.D.: brl-vgr.2429 Posted: Mon Mar 12 13:41:16 1984 Date-Received: Tue, 13-Mar-84 08:57:22 EST Organization: Ballistics Research Lab Lines: 31 I had submitted this earlier, when the 1099G inquiry first came out, but the postnews software on this host wasn't working -- things posted locally never were distributed. So here it is, a bit late to the world... I believe that the reason for being instructed to report (if itemizing deductions) the amount of state tax PAID as opposed to the amount actually OWED, is the situation in some states, as it is here in Missouri -- you have to do your Federal taxes FIRST, in order to transfer certain amounts from specific Federal tax-form lines to your Missouri state tax return. This comes AFTER you have computed your itemized deduction. Therefore, you don't know what state tax you actually owed at the time you figure your Federal taxes. Of course, you could re-do your Federal return AFTER you figure both it and the state, but that then changes your state return, which changes the amount you owe, which causes you to re-figure again, which changes the amount, etc., etc., etc. -- an endless circle, at least until the differences get below a dollar (or a cent, depending on how accurately you figure your taxes...). So it is much simpler for all concerned to just report the amount paid, which is verifiable from the W-2, and figure the difference on the following year's return, as is now done. Now that I think of it, I got a state tax refund (Missouri) last year, but I have never received a 1099G -- are states REQUIRED to send out this form? (I never itemized deductions -- maybe you only get one if you both itemized and got a refund?) Will Martin