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New Member
posted Feb 3, 2021 1:34:26 PM

Why does the box for entering sales tax say 2019 and not 2020?

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2 Replies
Expert Alumni
Feb 8, 2021 4:24:13 PM

When you receive your 2019 tax year State refund, the refund is usually received in 2020. The amount of the refund may or may not be considered as taxable income on your 2020 tax year federal return. 

 

IS IT TAXABLE INCOME? that depends.

 

IF you claimed the Standard Deduction on your 2019 tax year, no, it is NOT taxable. It won't be reported on your 2020 tax year return. 

IF you Itemized Deductions on your 2019 tax year return, it COULD be taxable income on your 2020 tax return. 

     Did you use the State Income tax paid as a deduction? Then no, it isn't.

     Did you use the State Sales tax paid as a deduction? Then yes, at least part may be taxable. 

 

TurboTax is asking about your numbers from your 2019 tax return so it can determine if the 1099-G is taxable on your 2020 tax year return. 

 

Level 15
Feb 8, 2021 6:04:15 PM

Many places in the program have not been updated yet .... it may say 2019 instead of 2020.  This eventually when it will be corrected so for now just ignore the typo ... it doesn't affect the program functions.