I RECIEVED A US TREASURY OVER PAYMENT CHECK FROM 2011 FOR 7400.00. WHERE DOES THIS GO IN MY INCOME THIS YEAR?

Forum|Forum|7 years ago
June 1, 2019
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TurboTax Deluxe Online

Opus 17

Level 15

Where did the money come from? Overpayment of federal income tax, or something else? And what state do you live in?

GNORRISAuthor

Level 2

IT WAS FROM THE U.S. TREASURY DEPARTMENT FROM AN OVERPAYMENT ON MY FEDERAL TAXES IN 2011. I LIVE IN ALABAMA.

Opus 17

Level 15

A refund of federal income tax is not taxable federal income.

However, Alabama allows a state income tax deduction for federal taxes you pay. If you deducted your federal income tax bill on your 2011 Alabama state income tax return, then the payment is taxable state income only (it is a reimbursement of a previous deduction, since you deducted it before, you owe tax on it now.)

I don't have Alabama installed on my computer, so I don't know exactly where it will be in the program. When you work on your state taxes, look for state-specific additions to or adjustments to your taxable income. There may be a specific place to add federal income tax refunds, or a more general place to add back any refund of a previous deduction.