FAQs - Individual Income Tax

I never received the refund or credit claimed on the 1099-G because it was captured/offset and applied to a prior Ohio tax liability. Why should I have to report the overpayment as income?

If the refund was offset and applied to state taxes or offset liability, you received a benefit from the refund by reducing your debt. This overpayment is still income to you. You may want to check with the IRS to see if any portion of what was applied to the back taxes can be included as an itemized deduction for taxes paid.