Vanessa A
Expert Alumni

Deductions & credits

Did you itemize you return last year?  If not, your state local refund is not relevant to your taxes this year.

 

The only time your state and local tax refunds are included in taxable income is if you itemized your return in a prior year and took a deduction for the taxes.  If you took a deduction and then got a refund you are getting a double tax benefit which the IRS doesn't like.  So, in this situation, you would add a 1099-G to your return where you are seeing the refund received for state and local taxes.

 

If you did not itemize your return, meaning you did not take a deduction for mortgage interest, medical expenses, state and local taxes and charitable contributions, you would have taken the standard deduction.  If you took the standard deduction, then you would not add your state or local refund to your return.

 

If you are seeing a number there, are you seeing it in the 2021 section or the 2022 section?  

 

Go back and look at your returns from 2021 to figure out which deduction you took. Look at line 12 and see if it matches what is on the side column or under the standard deduction statement.  You can also look to see if you have a Schedule A attached to your return.  If you do not, you did not itemize. 

 

 

You can also look at your 2022 Schedule 1 on line 1 to see if this income is being included in your taxable income for this year. As Davidd66 stated, if you are using the same account, TurboTax will auto fill this information. You just need to verify that it is the correct amount that you ended up receiving. 

 

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