Forgot to report state refund 1099-G

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elgoog
Posts: 84
Joined: Thu Sep 19, 2019 9:40 pm

Forgot to report state refund 1099-G

Post by elgoog »

Canadian citizen filed 1040-NR for tax years 2019 and 2020.

In 2019, I filed a CA state return and got a refund of $700. My tax liability in CA was $4600 and amount withheld was $5300. As per 1040NR instructions, I claimed a state and local income tax deduction of $5000 (Married Filing Separate) since amount withheld was $5300.

I just found out that this amount was supposed to be added back as federal income for 2020.

1. Is this amount includable in 1040NR for 2020 or should it be reported to the CRA?
2. Since tax season is already done, how should I go about fixing this?

Thank you.
elgoog
Posts: 84
Joined: Thu Sep 19, 2019 9:40 pm

Re: Forgot to report state refund 1099-G

Post by elgoog »

With regards to question 2., how do I avoid any penalties and/or interest?

The IRS only recently finished my tax return (filed by paper) only a month ago and I am surprised that they did not catch this.
elgoog
Posts: 84
Joined: Thu Sep 19, 2019 9:40 pm

Re: Forgot to report state refund 1099-G

Post by elgoog »

I think I should file a 1040-x for this. It seems like this income falls under

ARTICLE XXII
Other Income
1. Items of income of a resident of a Contracting State, wherever arising, not dealt with in the foregoing Articles of this Convention shall be taxable only in that State, except that if such income arises in the other Contracting State it may also be taxed in that other State.

Just wondering if I should report this on the CRA tax return as well?
nelsona
Posts: 18311
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: Forgot to report state refund 1099-G

Post by nelsona »

Refunds are not income for CDn purposes.

You would amend your 1040 (with 1040-X) and add the cali refund, and include a check for the what you owe.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
elgoog
Posts: 84
Joined: Thu Sep 19, 2019 9:40 pm

Re: Forgot to report state refund 1099-G

Post by elgoog »

Okay, thought so that they might not be includeable on CRA tax return. I have amended my 1040 and sent it already.
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