I was to receive a state tax refund from my 2008 taxes in North Carolina for $5,500. I elected to apply $4,000 to my estimated taxes and receive $1,500 as refund. What should my amount be on my 1099G for 2009?

Your refund was $5,500 and that is what they should have on the 1099G. You can deduct the $1,500 on Schedule A if you itemize. The refund is not taxable if you did not receive a tax benefit from the deduction.

Actually, the deduction on Schedule A would be $4,000.