mtebbe25
New Member

Has anyone else had problems with Turbotax dropping state income refunds from federal filing?

 

State tax filing

What do you mean?  Did your state not get filed?  Federal and state are completely separate.  The refunds come separately.  You have to pay any tax due separately.  

 

At the end Turbo Tax does show you the net combined amount of federal and state but that is only for your own info.  They come separately at different times from different places.

mtebbe25
New Member

State tax filing

Hi, thank you for your response.

 

My situation is a little different than your response.  I used the TurboTax online software to file both federal and state taxes.  The problem is that when using the software, data was not added from the software to the forms filed (all online through eFile).  I received a state income tax refund the previous year, and declared it in the online software.  However, the forms filed with the Federal IRS have a " .0" instead of the amount I declared.  I just received the dreaded notice from the IRS today stating I did not declare my state income tax refund; though it was declared in their program.

State tax filing

Oh, I see now.  

A State Tax Refund is taxable if you itemized deductions on that prior year's federal return and took a deduction for state income taxes instead of the sale tax.  You got a deduction benefit for it so now you have to include it as income. If you took the standard deduction it is not taxable and you don't need to report it.

 

For 2019, If your state refund is taxable it would be on schedule 1 line 1 which goes to 1040 line 7a.

 

If you filed the Free Edition last year you took the Standard Deduction and the state tax refund is not taxable and you don't have to enter it.

 

2018 schedule A

If you Itemized Deductions you would have a Schedule A in your return.  How much is on you 2018 1040 line 8?  You may have taken the Standard Deduction instead.  Is it one of these amounts?

 

For 2018 the standard deduction amounts are:

Single 12,000 + 1,600 for 65 and over or blind = 13,600

HOH 18,000 + 1,600 for 65 and over or blind

Joint 24,000+ 1,300 for each 65 and over or blind

Married filing Separate 12,000 + 1,300 for 65 and over or blind