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If I received a state refund last year of 326 and then found out it was a mistake and I wound up paying 538 to the state,do I need to report that transaction on my taxes?

So I received a state refund last year of 326.00. I deposited the check and a month or so later received a letter saying it was a mistake and that I owed the state 538.00. I paid the sum in full. Do I need to report any aspect of this transaction on my 2017 taxes?

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1 Best answer

Accepted Solutions
MiriamF
Intuit Alumni

If I received a state refund last year of 326 and then found out it was a mistake and I wound up paying 538 to the state,do I need to report that transaction on my taxes?

No, you do not need to report it. But you may want  to report it.

You made a tax payment in 2016 that exceeded the amount you originally reported, if you filed Schedule A. (If you don't itemize deductions this year, you can ignore the rest.) Because you paid additional tax in 2016, you now have an additional $212 tax payment you can take as a deduction.

How to enter:

  1. Select Personal from the top row of tabs, then Deductions and Credits.
  2. Scroll down the page to Estimates and other taxes paid.
  3. Select Other income taxes
  4. Select Balance due on your 2015 state taxes paid in 2016

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1 Reply
MiriamF
Intuit Alumni

If I received a state refund last year of 326 and then found out it was a mistake and I wound up paying 538 to the state,do I need to report that transaction on my taxes?

No, you do not need to report it. But you may want  to report it.

You made a tax payment in 2016 that exceeded the amount you originally reported, if you filed Schedule A. (If you don't itemize deductions this year, you can ignore the rest.) Because you paid additional tax in 2016, you now have an additional $212 tax payment you can take as a deduction.

How to enter:

  1. Select Personal from the top row of tabs, then Deductions and Credits.
  2. Scroll down the page to Estimates and other taxes paid.
  3. Select Other income taxes
  4. Select Balance due on your 2015 state taxes paid in 2016
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