When you look at your 2019 schedule A for itemized deductions, look at the state tax section.
- Did you mark the box using sales tax? If so, the refund is not taxable. You say you did not use state sales tax. Commonly used in states with no income tax.
- Is the box using state tax withheld checked? Your refund may be taxable in full or part. This is the box that must be checked on your return.
In the program for 2020, it wants your 2019 information to determine how much of the refund may be taxable.
- Look at 2019 state return. It will say something to the effect of total tax paid.
- Put 2019 total tax paid to your state in the program where it asks for the total of all your payment and withholding.
- Tax Year of Refund- 2019
- Continue
- Did any of these apply to you?
- Select your answer and continue through
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