Unreported FIT refund

[davidmblanding]

In 2020 we received a Federal Income Tax refund of $146.00 (of which $14.44 was interest) for an overpayment on our 2017 return. Having reviewed our 2020 FIT return I do not find an entry reporting this refund or the interest. We took the standard deduction rather than itemizing in 2020. Do we need to report the refund and/or interest? Do we need to file an amended return?

[ColeenD3 · Accepted solution]

You do not have to report the refund as it is not income, however, the interest is.

You'll enter interest paid from your bank by clicking on Federal Taxes, then Wages & Income, then scroll down to Interest & Dividends and click on Interest on 1099-INT.  Click start and follow the prompts.

TurboTax will ask if you received interest and you'll say "yes."  Then click "I'll type it in myself" and you'll be shown a screen to enter your amount(s).  TurboTax will address you as if you received a 1099-INT, but you may not have received the form, which is okay.  You'll simply type the amount of interest into box 1 on the screen.

[davidmblanding]

In fact, as you supposed, I did not receive a 1099-INT for the interest I received from the IRS/US Treasury (not from my bank) and I will amend my return per your directions.  Thank you!