Get your taxes done using TurboTax

First let’s see if you need to enter a state refund.  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 need to enter it you can change the amount to the 1099G.   

Federal on left

Wages & Income

 Scroll down to 1099-Misc and  Other Common Income

     You might need click on Show More to expand the section

 

Then it's the first line for Refunds Received for State/Local Tax Returns - Click Start

     You do not want the next line that says Other 1099G Income

 

On the first screen check YES - Received a State Refund.