In Missouri return: Total of 2020 state and local tax refunds are not imported to worksheet. Causes error with reporting KCMO refund amount (Line A - Line B < 0).

[jamesjetton]

In form MO-A, within the “State Income Tax Refund Smart Worksheet” I received a partial refund of Kansas City taxes paid for 2020, reported Line B. I received refunds from both state and local taxes paid for 2020, reported on the federal return but not imported to Line A. I cannot edit line A to remove the error, so Line C defaults to zero.

[DMarkM1]

You may not need to correct this line.  If the state/local refund was not taxable (included in Adjusted Gross Income) on your federal return, then there would not be anything to deduct on your MO return. 

In the step by step interview under the "Income" tab in the "Other common income" section, you can enter the state/local refunds you received in 2021.  If you itemized in 2020 be sure to indicate that. Once you complete that interview TurboTax will let you know if any of your refunds were taxable. 

If none are taxable then zero is the correct entry line C (and line 9) of the MO-A form.   

[jamesjetton]

Thank you, it appears the federal return interview was updated after my initial entries to include more questions, and a statement that my state/local refunds were not taxable, which was previously not stated. Additionally, the Missouri interview question regarding prior year refund should be worded more clearly. If there was no taxable portion of the prior year state and local refunds, the user should be directed to enter “0” for the local refund amount even if they received a refund from KC or STL.