You should report form 1099-G in the federal section:
- Sign in to your account and open the Wages & Income section of your return
- On the Your income screen, select Add more income
- Look for the Other Common Income section and select Show more
- Select Start on the Refunds Received for State/Local Tax Returns section
- Enter your refund amount
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
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.
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