On a prior year's tax return I claimed a deduction for student loan interest paid. In 2022 I received a refund for some of this interest that I previously claimed as a line item deduction. I was told to report this on my 2022 1040 Line 8 (Schedule 1 Line 8z) as a tax benefit rule. I'm having trouble finding out where in the Turbo Tax Website I can enter this information. Also, since student loan interest was not deductible on my state tax return, I need to make sure it doesn't count as income for my 2022 state return. I appreciate any help here.
Here's how to enter the refund in TurboTax so that it will be reported on Schedule 1 line 8z with a description that you enter.
Every state has different forms. If you tell us what state you are in, someone who is familiar with that state might be able to help you with the state.
In the income section of TurboTax scroll all the way down to "Other Income". Enter the amount and "Student Interest Refund" as a description.
When you're doing your state return the system will give you a chance to exclude any income that isn't taxable at the state level.
Thank you! I am in Pennsylvania. I just assumed because I never saw anywhere to deduct student loan interest on the state level that my refund wouldn’t be taxable on the state level.