Renald
New Member

State Refund Taxability

I received a 1099G for a State (NC) Tax refund for 2019 for an amount that should not have been taxed (a retirement payment that is exempt under NC law). I understand that refund should not be taxable by the feds if I used the standard deduction that year, which I did. Yet the TT worksheet put the amount on Sched 1, line 1 and Form 1040, line 8. How do I correct this? Ignore the 1099 G? Thx for any help!