Find type of payment on 1099-G form

[mrsdanielleharri]

the 1099-G form says it is a state tax return , but turbotax does not have that as an option.  They have taxable grant, agricultural program payment, market gain on CCC loan, reemployment trade adjustment assistance, or business or farm tax refund, how do I know which mine ist?

[ThomasM]

You've accidentally gone to the wrong input section.

Click on the Federal Taxes tab, then Wages & Income, then scroll down to the various headings on the lower half of the page (you may have to click "Skip to see all income" to display the headings).

Click on the heading Other Common Income and select Refunds received for state & Local Tax Refunds.  [You went one section too far, down to "Other 1099-G Income."]

You'll then click Start next to Refunds Received for State/Local Tax Returns.  Follow the prompts to input the amount. TurboTax will also ask you what year this refund applies to (if it's last years refund, it would be 2015) and if you took the Standard Deduction in that year.  This will help determine whether the refund is taxable on your current year return.

If you're unsure whether you took the standard deduction, you can check line 40 of your 2015 1040 (note the lefthand margin where it shows the standard deduction amounts).  If you filed a 1040A or 1040EZ, then you took the standard deduction.

[Bethmeg]

This was so helpful! Thank you!