In 2012, I worked in multiple states, and ended up owing additional state income tax to some while getting refunds from others. My 2012 federal tax return was itemized.

I now received 1099-Gs for the refunds I received from some of the states, and I understand I need to report those as income for my 2013 return.

However, am I allowed to offset those refunds with the additional taxes I paid to other states? For example, if last year I got a refund of $1000 from New York but owed $1000 to California, and this year I got a 1099-G for the $1000 from New York, do I need to report the $1000 on 2014 return or can I reduce it by the $1000 I paid extra to California last year?