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prior year tax return missing for transfer purposes

Last year I owed Michigan income taxes of $134.  This included a refundable MI property tax credit of $200.  My transfer from last year in Turbo Tax it shows a IRS deduction of $334 for prior year state taxes paid.

 

Is this correct?  I have searched IRS.gov and Michigan.gov and can not find clarification.  I don't know if I should change to $134 which I paid or use the $304 that Turbo Tax transferred.  

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1 Reply
LindaA
Expert Alumni

prior year tax return missing for transfer purposes

You'll leave the amount as TurboTax has it, but you'll have to report the $200 refund on your tax return. (Michigan may have sent a 1099-G that documents the refund.) If you itemized deductions last year and claimed your state income taxes as a deduction, all or part of that $200 may be taxable to you if you received a tax benefit because of the deduction. Enter the state refund in TurboTax and answer the interview questions so TurboTax can determine if any part of your 2016 Michigan state tax refund is taxable or not.

 

 

For more information, please see the following articles:

Is My State Tax Refund Taxable and Why?

Do I need to report the state or local refund I got last year?

 

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