Why didn't Turbotax generate a schedule 1 even though I entered a state tax refund?

[RalphD]

I entered a large state tax refund from 2017 into my 2018 Turbotax online, in the State Tax Refund field. The Schedule 1 was not created and the tax refund was not added to my income. I itemized my deductions in 2017 and 2018. Please explain why the Schedule 1 was not created and the income was not added on the 1040.

[DoninGA]

The TurboTax online editions are only for tax year 2019.

To complete and file a 2018 tax return using TurboTax you would need to purchase, download and install on a personal computer one of the 2018 desktop editions from this website - https://turbotax.intuit.com/personal-taxes/past-years-products/

A 2018 tax return can only be printed and mailed, it cannot be e-filed.

To enter a state or local tax refund (Form 1099-G) -

• Click on Federal Taxes (Personal using Home and Business)
• Click on Wages and Income (Personal Income using Home and Business)
• Click on I'll choose what I work on (if shown)
• Scroll down to 1099-MISC and Other Common Income
• On State and Local Tax Refunds on Form 1099-G, click the start or update button

Or enter state refunds in the Search box located in the upper right of the program screen. Click on Jump to state refunds

[rjs]

Are you talking about a 2018 tax return that you filed with TurboTax Online last year (in 2019)? As DoninGA pointed out, you cannot be doing a 2018 tax return in TurboTax Online now. Did you get an IRS notice about reporting your 2017 state tax refund on your 2018 tax return?

It's impossible to tell why the state refund was not reported without being able to see your 2017 and 2018 tax returns, and we can't see them here. The fact that you itemized deductions for 2017 does not, by itself, mean that your 2017 state refund is taxable on your 2018 federal tax return. Many other factors come into play. In the PDF of your 2018 tax return with all forms and worksheets, you can look at the State and Local Income Tax Refund Worksheet to see how TurboTax determined that the refund is not taxable. At the top of the worksheet it will show the refund amount that you entered.