Get your taxes done using TurboTax

This is a known error and in some cases TurboTax is doubling the entry in Federal Income for State and Local Refund Received.

 

Here is the work-around for this:  

 

  1. Go to Federal
  2. Wages and Income
  3. Other Common Income
  4. Refunds Received for State/Local Tax Returns
  5. Revisit
  6. Delete the entry there
  7. Enter your state refund again.

 

If all three of the following are true, your refund counts as taxable income:

  • You itemized deductions last year, instead of taking the standard deduction
  • You claimed state and local income taxes (not general sales taxes)
  • Claiming the deduction helped you increase your federal refund or lower your tax bill