No, you do not need to amend your 2020 return. Your 1099-G needs to be entered on your 2021 return. The amount represents a refund you received from a state or local tax return.
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
To enter your 1099-G, please follow the instructions below:
- With your return open in TurboTax, select Income & Expenses to open the Income and expenses summary screen.
- Scroll down to Other Common Income and select Show more.
- Then select Start next to Refunds Received for State/Local Tax Returns. This will take you to Did you get a state or local tax refund? screen, answer Yes.
- On the following screen, enter the info from your 1099-G and Continue.
- If you have any other refund forms to enter, you can select + Add Another State or Local Tax Refund on the State and Local Tax Refund Summary screen. If not, select Done and answer a few more questions about your refund.
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