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Level 1

Question

On wage and income page why is it showing my state return as income?!

Forum|Forum|6 years ago
October 15, 2019
2 replies
26 views

It is my state return from 2017 that u received in 2018 when I filed my taxes for 2017

TurboTax Free Edition Online

Level 11

A state tax refund that you received in 2018, is taxable income for 2018 on your *federal* return only.

When you filed your taxes for 2017 (which you filed in 2018) you deducted your state taxes paid in 2017, from your 2017 *federal* taxable income. your 2017 tax return resulted in you receiving a refund from your state. That state refund was received in 2018 from your state. So it's taxable income on your 2018 *federal* return.

Level 2

If you itemized in 2017... Turbo Tax will automatically add the refund of State Income tax to income in 2018... you will need to override if you were notified of any changes to that refund.