Retirement tax questions

Take a closer look at your form to determine if it is reporting the amount of your 2019 state tax refund, unemployment compensation, or something else.

If you received a state tax refund in 2020 for the 2019 tax year and you itemized deductions on your 2019 Federal return, then your state tax refund may be taxable.  You would need to enter the 2019 state refund amount into your 2020 Federal return.

State refunds are usually reported to you on Form 1099-G in Box 2.  Here is how you enter this information into your 2020 return:

1. With your return open in TurboTax, search for 1099–G (don't forget the dash!) and then select the Jump to link at the top of your search results.
2. This will take you to Did you have any of these types of income? Answer Yes.
3. On the following screen, check the first box State or local income tax refunds and continue.
4. Answer Yes to Did you get a state or local tax refund?

If your 1099-G is reporting unemployment, then use these steps to enter it into your return:

• On the top row of the TurboTax online screen, click on Search (or for CD/downloaded TurboTax locate the search box in the upper right corner)
• This opens a box where you can type in “unemployment” (be sure to enter exactly as shown here) and click the magnifying glass (or for CD/downloaded TurboTax, click Find)
• The search results will give you an option to “Jump to unemployment”
• Click on the blue “Jump to unemployment” link to get started

Here are some helpful tips to consider when entering your information reporting unemployment:  

•  If you had state taxes withheld from your unemployment, but there is not a state ID number on your form, then use the Federal ID number in box 10b.
• If you did not have any state taxes withheld, then leave all the boxes blank (boxes 10a, 10b, and 11).  This includes the dropdown box for the state name.
• If anything is entered in box 10a, 10b, or 11, then all of them must be filled in to avoid an error condition causing you to review the entry.  

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