LeticiaF1
Employee Tax Expert

Business & farm

Your state refund may be taxable, if you itemized your deductions in 2024.  If you did not itemized for 2024 you don't need to enter your refund.  

 

If you did itemize in 2024, when you enter them, TurboTax will figure out if they are taxable or not. The questions you are seeing are regarding your 2024 return because the amount of your refund that will be taxable, depends on how much the deduction affected your refund or tax bill in 2024.  

 

To go back to this section and review your entries:

 

  1. Go to the the Did you have any of these types of income? screen under Wages & Income
  2. Select Yes, on the State and local tax refunds and other government payments screen
  3. Select State or local income tax refunds even if not reported on Form 1099-G
  4. Select Continue
  5. On the Did you get a state or local tax refund in 2025? screen, select Yes
  6. On the Tell us about the refund screen, enter your total refund received in 2025

You will need to enter information from your 2024 tax return.  

Where do I enter a 1099-G for a state or local tax refund?