Your state or local tax refund received in 2019 could count as income if you itemized your deductions in 2018. If you did this, your 2018 tax return would have a Schedule A. If your return doesn't have a Schedule A, then your state or local tax refund won't count as income.
I was able to re-visit this section and add a 2018 State Refund to my income, but it took a bit of work as there was a big 2018 questionnaire TurboTax went through since I didn't prepare 2018 in TurboTax. I just stepped through this questionnaire, and at the bottom of one of the screens it had a box that stated Make my whole State Refund Taxable.
You may want to re-visit this section by following these steps,
- While you are in your Tax Home,
- Select Search in the top right side of your screen,
- Enter State Refund Taxable,
- Select Go to State and Local Tax Refunds,
- Select Yes,
- Select State or Local Tax Refunds,
- Select Continue,
- Select Edit next to your refund,
- Walk through all the questions, selecting Continue or Done,
- Until you see the screen that says Let's see if your state refund is taxable,
- Make sure all your answers are correct here.
Hopefully this helps!
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