FAQs - Individual Income Tax

I had an overpayment on a previous return, but the money was applied as a credit for the next tax year. Since I didn't receive a refund check, do I still have to report this as income on my federal tax return?

Yes, a refund and a credit are simply different types of overpayments. We must include on Form 1099-G any overpayment allowed on your return, whether it was issued as a refund or credit. You may want to check with the IRS to see if any portion of what was applied to the next year can also be included as an itemized deduction for taxes paid.