When I did my taxes last year, I must have clicked something wrong in Turbo Tax. I am a full time resident of Delaware and all my income was from PA. I had two W-2's for 2010. Both took out DE and PA taxes. Filed married filing jointly, all wife's income was from De. Own my home and deduct mortgage interest and property taxes.
When I did my taxes and e-filed them, I hshowed a return coming from PA, with me owing DE. I wrote a nice big check to Delaware, and waited for my return to come in from PA. It never did. When I finally called PA, they advised that they did not owe me a refund and the money they collected was what was owed. I called Delaware and was told that I must have filed the wrong state first, they ended up giving me back the amount I sent in along with an addition amount of roughly $300.
Started to do my taxes this year, and I have a 1099G form from Delaware for what they returned, the $300 that I should have gotten back had I did my taxes correctly and the extra $ that I sent in.
Since my state taxes from last year were messed up, I am trying to have everything corrected for this year, but with this 1099G form for an amount that is mostly made up of an overpayment by me, is this all taxable and do I have to claim it this year?
Would I have to ammend last years tax returns as well to fix my error?