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After you file
Report last year’s state or local tax refund, and we’ll figure out if it’s taxable or not.
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
Even when your refund is taxable, it may not be the entire amount. It depends on how much the deduction affected your refund or tax bill. Just answer a few simple questions about last year’s refund, and we’ll calculate the taxable amount for you.
Here is how you report your 1099-G, the amount reported in Box 2:
With your return open in TurboTax, search for 1099–G (don't forget the dash!) and then select the Jump to link at the top of your search results.
- This will take you to Did you have any of these types of income? Answer Yes.
- On the following screen, check the first box State or local income tax refunds and continue.
- Answer Yes to Did you get a state or local tax refund?
You should end up on the Tell us about your refund screen.
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January 31, 2021
5:19 PM