What is a 1099-G issued by the Arkansas Department of Finance and Administration?

Form 1099-G reports the amount of overpayment of state tax you have received in a tax year. This overpayment could have been received as a refund, carried forward as a credit applied to a subsequent tax year, offered as a charitable donation, or applied to other liabilities. This amount may be taxable to you. We also provided the 1099-G information to the Internal Revenue Service. 

You may be required to report amounts listed on Form 1099-G as income for federal tax purposes. 

Who receives a 1099-G?

We will provide you a Form 1099-G if: 

• you deducted your state income taxes on your U.S. Form 1040, Schedule A, for a tax year; and 
• your Arkansas Individual Income Tax payments for the tax year exceeded your actual tax liability by $10 or more ( e.g., you received a refund, applied your overpayment to next year’s estimated tax, or your overpayment was used to pay another liability). 

How is the 1099-G amount calculated?

The amount reported on Form 1099-G is calculated as tax payments minus Arkansas Income Tax liability. Payments may include all estimated payments, credit transfers, return payments, amended tax payments, extension payments, Arkansas Withholding Income Tax credit, and pass-through payments. Tax liability refers to Arkansas Income Tax liability before any penalty and interest is added.

I received a 1099-G for an amount greater than my refund or credit carry forward. Why is this? 

If all or part of your tax overpayment was used to:

• pay penalty and interest, such as late estimated payment penalty; 
• pay a prior year’s tax liability or other type of tax liability; 
• pay a federal, state, or municipal offset; or 
• make a voluntary donation on AR1000-CO; then 

the full amount of your original overpayment is still reported on Form 1099-G as income.
If you receive multiple refunds or overpayments for one tax year, these will be reported on one Form 1099-G for the tax year you received the refund or overpayment.

I received a 1099-G for an amount less than my refund or credit carry forward. Why is this? 

If you received a refund or overpayment of tax after December 31, these will be reported on Form 1099-G in the following year.

What should I do if I believe my 1099-G is incorrect?

Please write to Arkansas Department of Finance and Administration at the following address:
ARKANSAS STATE INCOME TAX
PO BOX 3628
LITTLE ROCK, AR 72203