I filed for 2017 by paper and itemized, taking the SALT deduction.
I filed for 2018 using TurboTax and took the standard deduction.
Since I filed 2017 late, I got the state refund for both years in 2019. Now that I am working on my 2019 return in the "Refunds Received for State/Local Tax Returns" section, TurboTax already had the 2018 refund in, and I manually entered the 2017 refund. It then asked me if I itemized in 2018 and I said that I took the standard deduction. Then it said "Good News! Your 2018 New Jersey Refund Is Not Taxable."
But it never asked me about whether I itemized for 2017! How can I tell TurboTax that I need to pay taxes on the 2017 state refund I received in 2019?
