Mailing of Forms 1099-G and 1099-INT March 2022 Tax News
Follow up article for a Public Service Bulletin posted on our website January 10, 2022
Federal law requires the Franchise Tax Board (FTB) to mail taxpayers who itemized and received a refund, or who received an interest payment, of $10 or more, one of the following:
- Form 1099-G, Report of State Income Tax Refund
- Form 1099-Gs are issued by tax year.
- Example: A taxpayer who receives refunds in 2021 for overpayments on tax years 2019 and 2020 will receive two 1099-Gs - one for 2019 and one for 2020.
- Form 1099-INT, Statement of Interest Income
- FTB issues Form 1099-INTs for all interest paid during the 2021 calendar year.
If a tax return needs more validation and review, it may be held past the year in which it was filed. When the tax return has been processed, if a refund has been issued, the 1099-G will be for the year the refund was issued. This may be different than the year the taxpayer filed, or that was auto populated in the tax preparation software, and the preparer’s copy may need to be updated.
Overpayments, or interest income reported on Form 1099-G or Form 1099-INT, are considered refunded in the following situations:
- If paid directly to the taxpayer, or directly deposited into their financial institution.
- When used as an offset for other liabilities, such as; taxes, penalties, or interest.
- When credited as an estimated tax payment.
- If intercepted (offset) by a state, city, or county agency, or by the Internal Revenue Service (IRS).
- If elected as a use tax payment.
- When paid to voluntary contributions as designated by taxpayer.
For more information on 1099-G and 1099-INT visit ftb.ca.gov.