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After you file
There was an issue where TurboTax was doubling the amount for state refund received for previous year. If that is the change you are referring to, here is the work around for that issue. If something else is happening, please post exactly what is changing.
Go to Federal
- Wages and Income
- Other Common Income
- Refunds Received for State/Local Tax Returns
- Revisit
- Delete the entry there
- 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
March 20, 2021
4:22 PM