Good afternoon, My employer withhold local income taxes during a portion of CY2020 which was inappropriate. I received a refund through their taxing entity and a 1099-G in CY2023 indicating the amount of the refund and 2020 in box 3. I also had a refund from the State of PA in 2023 due to overpayment of 2022 state taxes. Turbo Tax (Deluxe) asked whether I itemized in 2022 for the PA refund but did not ask about 2020 and is calculating tax as if this was taxable income in 2023. I did not itemize in 2022 or 2020 so these refunds should both not be taxable. How does one work around this? I am concerned that not reporting, as others have suggested, is not appropriate - non taxable does not equate to non reportable does it? Thanks!
