Entering Refunds for Amended State Returns

I filed amended state returns for prior years (2018-2020) in early 2022 and received refunds later that year. All three years we took the standard deduction which would have made the state tax refund non-taxable. Yet when I enter them individually in our 2022 Turbotax Premier return (to correctly identify the tax years) they increase my tax liability despite it also using the standard deduction. Is this correct? If not, is this a Turbotax error? What is my path forward? Thanks!

232

Expert Alumni

Mar 20, 2023 2:36:48 PM

They would increase your tax liability because you have added more income.

If you are ending up with the standard deduction anyway and all of the amended years were standard deductions, I suggest removing them, so as not to increase your liability and perhaps cause an error when ready to e-file.

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Entering Refunds for Amended State Returns