If you used TurboTax in 2020, then the state refund from your state tax return would have been rolled over to this year's return.
Please keep in mind that 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 (rather than sales tax)
- 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 all depends on how much the deduction affected your refund or tax bill.
If you still would like to edit or delete your refund, please follow the steps below:
- Sign in to your account and open the Income & Expenses section of your return
- Click on Federal
- On the Your income and expenses screen, scroll down to the Other Common Income section
- Select Start on the Refunds Received for State/Local Tax Returns section
- Use the trash can icon to delete your refund.
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