topic Virginia issued a tax rebate, how do I report this in addition to my refund, when I try it states it was already entered for the state in State tax filing

Virginia issued a tax rebate, how do I report this in addition to my refund, when I try it states it was already entered for the state

andreacw04 — Mon, 23 Feb 2026 09:57:03 GMT

Re: Virginia issued a tax rebate, how do I report this in addition to my refund, when I try it st...

DMarkM1 — Sat, 28 Jan 2023 16:32:41 GMT

If you took the standard the deduction on your federal return for TY 2021 then you do not need to enter the VA rebate amount. It is non-taxable.

If you itemized on your 2021 tax return then add the rebate amount to your VA state refund amount as one 1099-
G. Follow the prompts and TurboTax will calculate if any of your state tax refund amounts are taxable.

Re: Virginia issued a tax rebate, how do I report this in addition to my refund, when I try it st...

ramsaure — Wed, 18 Feb 2026 20:05:11 GMT

I entered the rebate as a 1099-G and that section of TurboTax said it wasn't taxable income. However, the Smart Check at the end says it isn't and wants me to recalculate.

Re: Virginia issued a tax rebate, how do I report this in addition to my refund, when I try it st...

RogerD1 — Wed, 18 Feb 2026 20:43:20 GMT

Did you itemize deductions in 2024 or take the standard deduction on your Federal 1040 tax return? If you took the standard deduction, then nothing will be taxable on either a Virginia refund or rebate. Even if you itemized deductions last year, it is still possible that your Virginia rebate and refund will not be taxable. Because the state and local income tax deduction for itemizing was capped at $10,000 in 2024, your refund and rebate won't be taxed in 2025 as long as subtracting those two amounts from the total state and local tax paid last does not reduce your itemizing deduction below $10,000.

For example, if you itemized in 2024 and had $11,000 of state and local taxes (including property tax), you would have only been able to claim $10,000 (because of the cap). If the total of your Virginia 2024 rebate and refund is under $1,000 (the difference between the $11,000 of tax you could claim vs. the $10,000 you were able to claim), you will not be taxed on any of this on your Federal 1040. Any amounts over the rebate + refund that exceeds $1,000 will be taxable income on your Federal 1040.

If TurboTax is still causing issues for you on this topic, please reply back with more detail on what Smart Check is saying "isn't".

Re: Virginia issued a tax rebate, how do I report this in addition to my refund, when I try it st...

cjdauburn — Tue, 07 Apr 2026 12:50:23 GMT

Hello,

I am having a similar issue due to itemized taxes. I understand I have no liability because my total was well above the $10,000 cap.

However, I'm trying to enter the 1099-G information, so it is properly captured. When I add the $400 as a Virginia state refund, I'm asked to provide the total withheld/payments. If I use the amount from my 2024 tax return (760 CG Line 26), I receive an error. Before the rebate, the net 2024 state tax (Line 18) from my return matched the sum of the estimated taxes paid (Line 20), withholding (Line 19B), and amount paid with return (Line 27). Inserting the $400, and using the numbers from my 2024 return, appears to reduce the sum of everything I paid by $400 compared to the total state tax for 2024. Should I reduce the total state tax for 2024 by $400, even though that's not what was on my tax return? I didn't have any luch finding a place to do that in Turbotax.

Jeff

Re: Virginia issued a tax rebate, how do I report this in addition to my refund, when I try it st...

AmyC — Wed, 08 Apr 2026 21:39:53 GMT

I see two options for you:

1. Don't enter it: The IRS gets a copy of the 1099-G, but they also have your 2024 return showing you were capped at $10,000. They won't flag it because the math already proves it's non-taxable.

2. Enter it:

Do not reduce your total state tax. You should report what was actually on your 2024 return.
Adjust the "Total Payments" field in TurboTax: In the 1099-G entry screen where it asks for "Total Withheld/Payments," manually enter the sum of your 2024 withholdings/estimates plus the $400 rebate.
- This satisfies the software's logic that you "paid in" enough to justify receiving that $400 back. Since you’re over the SALT cap anyway, this adjustment won't change your tax liability—it just clears the diagnostic error.