If you took the standard deduction on your 2019 federal return, you state refund is not taxable.
If you itemized deductions, it may be taxable. TurboTax calculates the "tax benefit" you received from the deducting the total state taxes withheld in the previous year.
To enter your state refund, reported to you on Form 1099-G, please follow these steps:
- Click on Federal > Wages & Income
- In the Other Common Income section, click on the Start/Update box next Refunds Received for State/Local Tax Return.
- On the screen, Did You Get a State or Local Tax Refund Last Year? click the Yes box.
- If you used TurboTax to prepare your 2019 return, you may see a screen, Your 2019 State and Local Tax Refunds. Click the appropriate box and then click Continue.
- If information from a previous year return did not transfer over, you will see the screen, Tell us about your refund.
- Enter the information about your refund.
