topic CA tax refund 1099 in Get your taxes done using TurboTax

CA tax refund 1099

dgg1 — Thu, 06 Feb 2020 18:34:18 GMT

I have received a 1099 from CA due to a 2018 over payment. As we are now limited to a maximum taxes deduction and knowing that I have more than $10,000 of other taxes (property taxes and state sales taxes) I decided it would be wise to check the box indicating that I chose to use sales taxes instead of income taxes.

However, I have received a 1099 from CA (the FTB). How do I enter this in a way that will insure that this amount is NOT taxable?

Re: CA tax refund 1099

BillM223 — Thu, 06 Feb 2020 21:04:41 GMT

You can read about how the IRS handles this new situation at this webpage.

In the Income list in TurboTax for Federal, look for Refunds Received for State/Local Tax Returns. This may be under Other Common Income. Click Start.

Enter the information about the refund. Note that the TurboTax screens have been updated to ask you specifically what your deductions were in 2018 and how they were limited (if you did your 2018 return in TurboTax, it will use the 2018 actual numbers and ask you if they are right).

Armed with this information of what happened on your 2018 return, TurboTax can apply the new rules for the taxation of state tax refunds.

Re: CA tax refund 1099

dgg1 — Sun, 09 Feb 2020 01:59:42 GMT

Thank You