I live in NH and work for a company with an office in MA. However I worked mostly remote in 2023, so I was able to claim a significant refund for state taxes on my 2023FY tax return that I filed last year in 2024 - almost all of taxes that were witheld for MA state came back to me.
I recently (about a month ago or so) received 1099-G from MA revenue service showing the refund amount.
What do I do with it?
Last year when I claimed the refund, I used Online Turbotax Premier.
Was it smart enough to take care of that refund and increase my 2023 income on taxes done last year and I am all set, or do I need to manually enter this amount as 2024 income on my taxes that I am about to do in 2025?
If the latter, does it mean I might owe penalty for tax underpayment?
I did not realize that state refund might be income that I need to pay federal tax on. I thought Turbotax would reconcile it automatically and reduce my federal refund accordingly on the 2023 tax return where I claimed the state tax refund. Does it do that?
Thanks
