Hi- I am filing late returns from 2016-2019 now. I’m unsure as to how to correctly report the state refunds as income - do I report on the following tax year or the year I receive the payment (likely 2021 at this point given the IRS takes 4-8 weeks to process mailed returns)?
For example, for 2016 and 2017 I am due a federal and state refund. I understand I have forfeited the 2016 refunds because I am beyond the 3-year mark, but my specific questions are:
1. Do I need to add the 2016 state refund to my federal tax return since I am not technically going to receive it (have forfeited it)?
2. What year would I add the the 2017 state refund to? The following tax year 2018 or the year I actually receive it (likely 2021)?
Turbo tax automatically adds it to the following tax year, but not sure if this correct. Thanks in advance for your help!
