Are the instructions for calculating the taxable portion of the state tax refund correct? Referencing non-existent lines on 2018 1040 (line 40, 44, 56, etc)?

[joshuakendall]

I am trying to manually perform these calculations as directed by TurboTax, however, I am losing confidence because I can't find the relevant lines on the 2018 forms as instructed. Best I can tell they were on the 2017 1040.

[KarenJ2]

I reviewed both the online and CD/Download version and the line numbers for 2018 Schedule A are correct.  I believe what has happened is that the program has been updated.  Please update.

A response to a state refund question by rjs previously:

If you are using the CD/Download TurboTax software for 2019, you can look at the State and Local Income Tax Refund Worksheet to see how the taxable amount of your refund was calculated. Or look at your 2018 Schedule A. If line 5d is more than line 5e, and line 5d minus line 5e is more than your state refund, the refund is not taxable.

Tax treatment of state and local tax refunds clarified - Journal of Accountancy

[dbattle2879]

Thanks for the help, what number do I put in the revised income tax box? Is it the 5d minus the 5e or 5d minus 5e minus my 2018 refund? Or something else?

[ColeenD3]

 What they are saying is that these two conditions must exist in order for the 2018 state refund not to be taxable:

1. If line 5D is more than Line E
2. and if 5D minus 5E is more than your state refund amount in 2018

Please see the two-part worksheet. You can plug in your own figures.

[dbattle2879]

So here's where I"m getting lost.

My 5d is more than 5e and 5d minus 5e is greater than my state refund. So what is my revised number? I couldn't download the worksheets you linked. If there's a link to those that would be great. Here's what TurboTax is asking me to fill out. Since those boxes don't exist in Form 1040 I'm not sure what to put in.

[BillM223]

Line 44 on the 2017 return (which is what your screen shot is probably referring to, a screen that was not updated) is line 11 on the 2018 return.

Line 56 on the 2017 return is line 13 on the 2018 return.

Could you tell is where you saw this screen shot (with the bad line numbers)? Was this in the 1099-G interview for a state tax refund?

[dbattle2879]

Thank you, that's helpful.

When I click over to forms it shows it as "Schedule 1 line 10"

Below are all of the screen shots in EasyStep that lead up to the previous screenshot I already posted.

[BillM223]

Thank you for the screen shots. None of us tax pros use EasyStep so it would have taken me forever to find that.

So are you planning to recalculate your 2018 taxes and plug them in under "Revised"?