Missed State Tax Refund 1099-G on my 2021 1040-NR - Should I file an amended return?

This is actually more common than you might think! When you receive a state tax refund, it's only taxable federally if you itemized deductions in the previous year and received a tax benefit from deducting state taxes. For your situation as a non-resident alien filing Form 1040-NR, you'll need to check if you itemized deductions on Schedule A of your 2020 return. If you didn't itemize (took the standard deduction instead), then the state refund isn't taxable and you don't need to amend. If you did itemize and should have reported it, then yes, filing an amended return (Form 1040-X along with a corrected 1040-NR) would be the proper course of action. The IRS generally has a 3-year statute of limitations for amendments, so you're still well within that timeframe. As for penalties, they're typically based on the additional tax owed. If the amount is small, penalties might be minimal or potentially waived if you have reasonable cause (like genuine confusion about the requirements).

I was in almost the EXACT same situation last year with a missed 1099-G on my 1040-NR. I spent HOURS trying to figure it out until I discovered taxr.ai (https://taxr.ai) which analyzed my documents and confirmed I needed to file an amended return. Their system reviewed my previous returns, checked if I had itemized deductions (which impacts whether state refunds are taxable), and calculated the exact amount I needed to report. Saved me so much stress because my situation was also "unique" according to the first tax person I talked to. The best part was uploading my 1099-G and previous return - it immediately identified the issue and walked me through the exact forms needed for the amendment. Way easier than the back-and-forth with tax pros who weren't familiar with non-resident situations.

Just wanted to follow up about my experience with taxr.ai after mentioning my complicated non-resident/resident transition situation. I decided to try it and honestly didn't expect much, but I was really surprised! It correctly identified that my state refunds from 2020 were partially taxable based on my previous filing status and deductions. The system even caught that one state's refund had different treatment than another because of how I had filed in the previous year. I've already submitted my amended returns based on their analysis. The step-by-step amendment instructions were super clear, even specifying exactly which lines needed to be updated on my 1040-NR. Definitely worth checking out if you're dealing with this 1099-G situation.

I had issues with missing 1099 forms too and spent THREE MONTHS trying to get someone at the IRS to answer my questions. Literally impossible to get through. Finally used Claimyr (https://claimyr.com) to get connected to an actual IRS agent who explained exactly what I needed to do. You can see how it works here: https://youtu.be/_kiP6q8DX5c but basically they get you past the IRS phone tree and endless hold times. I was connected to an agent in about 20 minutes who confirmed I needed to file an amended return (Form 1040-X) along with the corrected 1040-NR to report the missing 1099-G income. The agent also explained that because I was voluntarily correcting the issue, they could potentially waive penalties depending on the amount owed. Way better than stressing about whether I was doing the right thing!

I owe everyone an update and an apology to the person who recommended Claimyr. After my skeptical comment, I was still desperate enough to try it because I also had a 1099-G issue with my 1040-NR from 2021. I honestly can't believe it worked. After trying for WEEKS to get through to the IRS myself, I was connected in about 35 minutes. The agent confirmed I needed to file an amended return for my missed 1099-G, but also told me there's a simplified procedure if the amount is under a certain threshold. Even better, they explained that since I was voluntarily correcting the issue before any notice from them, I could include a brief statement explaining the honest mistake which could help avoid penalties. Sorry for being so dismissive before - this service legitimately solved my problem.

For what it's worth, I missed reporting a 1099-G on my 1040-NR back in 2019 and never amended. Nothing ever happened. The amount was only about $800 though, so maybe that's why? Not saying you shouldn't fix it, just sharing my experience.

Quick tip: If you end up filing an amended return for the 1099-G, make sure you also look at your state tax situation. If your federal taxable income changes, you might need to amend your state return as well. Each state has different requirements for this.