North Carolina State Income Tax 1099-G for 2006 in 2007?

Hello: Few days back I received a mail (1099-G form - State Income Tax Refunds 2007) from the State Of North Carolina Dept. of Revenue that State Income tax refund, credit or offset: $1256.00 for the year 2006. This mail also has a fine print that "This statement is for information only and is not a bill nor is it a check." In 2006, I did live in NC and received exactly the same amount as refund while I filed for income tax for 2006 in 2007. In left NC sometime end of 2006 for FL. I never worked in NC in 2007. This is 2008 and time to file income tax for 2007. My question are, 1. What is this refund? 2. Can I include it for 2007 Income Tax? Please advise. Thanks. Tim

Public Comments

1. "Exactly the same amount" seems to indicate they've got it right. If you deducted state taxes on your 2006 Federal return, it has to be included as income on your 2007 Federal return.
2. If you itemized for 2006 and deducted state income tax then you have to claim it as income on your 2007 return. If you didn't itemize for 2006, then you don't do anything with it.