How this is handled will depend on whether or not you
itemized your deductions in 2015 or if you took the standard deduction. If you took the standard deduction, you did
not receive a benefit from the state income tax deduction and the refund is
non-taxable.
However, if you had itemized deductions, Turbo Tax will
calculate how much of the refund is taxable.
You may need to enter some information about your 2015 taxes if you did
not use Turbo Tax or you are not using the same user ID.
Now, as far as the amount you paid back is concerned, you do
not net the amount you paid from the refund.
Instead, follow the steps below:
1.
Click on
Federal Taxes
2.
Click on Deductions and Credits
3.
Scroll to Estimates and Other Taxes Paid (you
may need to click on show all tax breaks)
4.
Click the button beside “Other Income Taxes”
5.
Scroll down to “Other Income Taxes Paid in 2016”
6.
Click the button beside “Balance due on your
2015 state taxes paid in 2016”
7.
Enter your state and the amount of tax you paid.
If you itemize you will receive a deduction for the amount
you paid.
