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Get your taxes done using TurboTax
be careful in entering state refunds. in some cases they are not taxable. here are some reasons:
you did not itemize for the year of the refund
you paid alternative minimum tax (still may be partially taxable)
you itemized but took the sales tax deduction.
the state refund exceeds the sales tax deduction you would have been allowed - only the excess is taxable
TT usually handles this correctly if you used TT in the prior year.
the exceptions are for refunds for earlier years - like a 2017 refund in 2019 and if you are in AMT for the year of the refund.
‎August 28, 2020
12:30 PM