2007 state tax refund not received yet

[daisy]

Client didn't file last yer's state return yet, he forgot it, he will be getting a small refund, about $100. We have it done, and he will be mailing it in tomorrow, so he didn't receive it yet, I would guess that he shouldn't claim it (he itemizes every year) as income on his return last year, but he should claim it next year. The line for this income specifically says state refund for last year. Should he just include both state refunds on next years return (2006 and 2007), even though it will only ask for 2007? Or should he claim it on this year's even though he hasn't received it?\

I'm really leaning towards claiming both years on next year's return, but I want o make sure I'm doing it correctly.

Thank you!

[TAXBILLY]

Income is reported in the year received (constructive receipt).

taxbilly

[Pacun]

Taxbilly is correct and I would like to add that next year, you have to manually enter the amounts for the extra refunds since ATX will only pick up the previous year. Also you need to make calculations if itemized deductions are barely higher than federal standard deduction for the delayed year.

[mcb39]

WI always sends a 1099G showing the amount of refund received. The others are correct in that you claim it in the year it is received....

[Bart]

WI always sends a 1099G showing the amount of refund received. The others are correct in that you claim it in the year it is received....

Missouri and Kansas always send 1099G also. That doesn't mean my clients always give them to me.

[kcjenkins]

And the 1099G form has a box to indicate what year the refund is from.