Deductions & credits

Anytime you enter a state refund from a prior year, there is a follow up questions to determine if it is taxable. 

To revisit this section:

1. Select Federal on the left side.
2. Select Income & Expenses toward the upper left.
3. Find Refunds Received for State/Local Tax Returns on the list and click Edit to the right.
4. The next page should show your taxable state refunds, click Continue.
5. The next screen Refunds From Years Prior to 2020, gives you the opportunity to show the amount is not taxable, but it defaults to taxable. See the image below. 
6. If your refund is not taxable enter 0 in the Taxable amount box.