If your wife did not itemize her deductions on Schedule A of her 2015 tax return last year and instead took the Standard Deduction, you will not have to include her 1099-G state tax refund on your jointly filed 2016 tax return. If your wife did itemize then the state tax refund is taxable and you will want to follow these steps to include her 1099-G on your tax return:
If you have received a 1099-G for a state income tax
refund, please follow these instructions:
• Open up your tax return in Turbotax
• Click “pick up where I left off”
• In the search box at the top right of your screen
type “1099-G” and this page should appear:
Where do I enter a 1099-G for a
state/local refund?
• Click the blue box “Go to 1099-G” and carefully
answer all of the questions regarding your state income tax refund.
When adding a second 1099-G click the line that reads
"Add another state or local tax refund".
