I have a tax refund from previous year when I did not itemize and I have a tax refund from a prior year related to 1040x. That year I had itemized.
But because my SALT were substantially above the federal deduction cap in both those years, I should not be paying taxes on either of the refunds. I have received 2 1099-G.
The first one was auto recorded by TurboTax when it imported data from prior year tax return and I see that it's not being taxed. When I manually enter the 2nd 1099-G, all the amount in box 2 is reported as taxable in schedule 1 line 1. It should not be.
How do I correctly enter this 1099-G so that it does not get taxed?
How do I handle this situation?
Thank you.
