Why does previous years return need to be included on current filing?

[mikemartini]

I see last years tax return information included in this year - why does it matter what I got for a return last year to be included in current year?

[VolvoGirl]

Where is it included?  If you transferred from last year it fills in the last year column on the summary screens but that's only for your information to compare them and so you don't forget to enter something this year.  And to fill out any carryover amounts like for depreciation or a Capital Loss Carryover.  

You will need to enter the 2018 AGI to efile 2019.

[mikemartini]

Its included under section that says:

Refunds Received for State/Local Tax Returns

[VolvoGirl]

Ok.  A State Tax Refund is taxable if you itemized deductions on that prior year's federal return and took a deduction for state income taxes instead of the sale tax.  You got a deduction benefit for it so now you have to include it as income. If you took the standard deduction it is not taxable and you don't need to report it.

If you filed the Free Edition last year you took the Standard Deduction and the state tax refund is not taxable and you don't have to enter it.

If you Itemized Deductions you would have a Schedule A in your return.  How much is on you 2018 1040 line 8?  You may have taken the Standard Deduction instead.  Is it one of these amounts?

For 2018 the standard deduction amounts are:

Single 12,000 + 1,600 for 65 and over or blind = 13,600

HOH 18,000 + 1,600 for 65 and over or blind

Joint 24,000+ 1,300 for each 65 and over or blind

Married filing Separate 12,000 + 1,300 for 65 and over or blind

Or it could be less if you were claimed as a dependent.  How much is on you 2018 1040 line 8?