topic Filing two years of taxes now... Do I include my state tax refund as income this year? in Get your taxes done using TurboTax

Filing two years of taxes now... Do I include my state tax refund as income this year?

jbronson3 — Thu, 17 Dec 2020 05:27:27 GMT

I'm belatedly filing two years of taxes now. Do I include my state tax refund as income this year?

Turbo Tax figured out the amount...

Will i be taxed on it next year too?

Don't want to be audited...

Re: Filing two years of taxes now... Do I include my state tax refund as income this year?

ee-ea — Thu, 17 Dec 2020 07:40:06 GMT

The refunds are taxable in the year you have the money in hand.

Re: Filing two years of taxes now... Do I include my state tax refund as income this year?

Anonymous — Thu, 17 Dec 2020 08:57:24 GMT

under some circumstances a state income tax refund is not taxable:

you didn't itemize your income tax deductions or you took the sales tax deduction

some or all may be non-taxable if you paid alternative minimum tax

there are many other times when none or only part of a state income tax refund is taxable

see IRS PUB 525. the 2020 version is not yet available.

Re: Filing two years of taxes now... Do I include my state tax refund as income this year?

xmasbaby0 — Thu, 17 Dec 2020 13:50:50 GMT

You have not received the state refund yet since you are just now filing the state return. IF you itemize deductions for the tax year that you filed and receive the state refund in 2021, you will enter that state refund amount on your 2021 tax return--that you prepare in 2022.

Make sure you are using the right software for each tax year that must be prepared separately. You cannot combine them in any way. Do not even use the same envelope when you mail them. Each tax year has to be prepared using the forms and software for the specific tax year.

When you mail a tax return, you need to attach any documents showing tax withheld, such as your W-2’s or any 1099’s. Use a mailing service that will track it, such as UPS or certified mail so you will know the IRS/state received the return.

Federal and state returns must be in separate envelopes and they are mailed to different addresses. Read the mailing instructions that print with your tax return carefully so you mail them to the right addresses.

Hint:

Since you are filing a late 2019 return, the IRS will not have a 2019 AGI in the system for you. When the 2020 software asks for your 2019 AGI so that you can e-file 2020, use “zero.” If you cannot e-file by using zero then you will have to print, sign and mail your 2020 return.

Re: Filing two years of taxes now... Do I include my state tax refund as income this year?

jbronson3 — Tue, 22 Dec 2020 00:46:33 GMT

Do you know when the deadline to file 2018 taxes are?

I read 2 years, but the rep on the phone today said 3 years...

Re: Filing two years of taxes now... Do I include my state tax refund as income this year?

DoninGA — Tue, 22 Dec 2020 01:00:05 GMT

@jbronson3 wrote:

Do you know when the deadline to file 2018 taxes are?

I read 2 years, but the rep on the phone today said 3 years...

The 2018 tax return that has a tax refund must be filed within three years from the due date of the tax return.

For tax year 2018 it must be filed on or before April 15, 2022.

To complete and file a 2018 tax return using TurboTax you would need to purchase, download and install on a personal computer one of the 2018 desktop editions from this website - https://turbotax.intuit.com/personal-taxes/past-years-products/

A 2018 tax return can only be printed and mailed, it cannot be e-filed.

Re: Filing two years of taxes now... Do I include my state tax refund as income this year?

xmasbaby0 — Tue, 22 Dec 2020 01:02:49 GMT

You have three years from the filing deadline to file a tax return and receive you refund. Your 2018 tax return must be filed by April 15 of 2022 or your refund is forfeited. If you owe tax due your penalties and interest began to add up after April 15 of 2019.

Online preparation and e-filing for 2017, 2018 and 2019 is permanently closed.

To file a return for a prior tax year

If you need to prepare a return for 2017, 2018, or 2019 you can purchase and download desktop software to do it, then print, sign, and mail the return(s)

https://turbotax.intuit.com/personal-taxes/past-years-products/

You may also want to explore purchasing the software from various retailers such as Amazon, Costco, Best Buy, Walmart, Sam’s, etc.

Remember to prepare your state return as well—if you live in a state that has a state income tax.

Note: The desktop software you need to prepare the prior year return must be installed/downloaded to a full PC or Mac. It cannot be used on a mobile device.

If you are getting a refund, there is not a penalty for filing past the deadline. If you owe taxes, the interest/penalties will be calculated by the IRS based on how much you owe and when they receive your return and payment. The IRS will bill you for this; it will not be calculated by TurboTax.