topic State Tax Refund in Deductions & credits

State Tax Refund

Mike029 — Mon, 09 Mar 2026 05:27:34 GMT

I had a sizeable DC refund from my 2020 taxes. Base on the response from the step-by-step process, and that I took the standard deduction in 2020, I do not have to pay taxes on my DC return. I also don't seem to have a 1099-G issued by DC.

TurboTax filled in the amount on my 2021 federal since I used the TurboTax software to file for 2020.

Just wondering. Is the refund noted anywhere in my 2021 return? Looked but found nothing that reflects the non-taxed DC refund. Since it's not taxed in anyway, I guess the amount does not need to be on the return. It just seems wrong. Will raise a flag during a review?

And even though I do not have a 1099-G in my possession, can I file now with the federal forms?

Re: State Tax Refund

DawnC — Mon, 21 Feb 2022 04:06:42 GMT

No, your 2020 DC refund amount will not be referenced anywhere on your 2021 return since you did not itemize last year, and no it should not cause a flag during review. TurboTax saved the amount and entered it. If you had itemized last year and some or all of the refund was taxable (it isn't), TurboTax would have included that amount as income on your 2021 return. But since it is not taxable, the information is in the background of your tax return, but nothing about the refund is included with the tax return that gets sent to the IRS.

If you took the standard deduction in 2020, your DC tax refund would not be taxable on your 2021 return

Only if all three of the following are true, your refund counts as taxable income:

You itemized deductions last year, instead of taking the standard deduction
You claimed state and local income taxes (not general sales taxes)
Claiming the deduction helped you increase your federal refund or lower your tax bill

And yes, you can file without the 1099-G for the tax refund since you (and the IRS) know it is not taxable. They are NOT required to send you a 1099-G if they know you took the standard deduction the previous year. They are only required to send it to the IRS. See the 2nd paragraph from the IRS instructions for Form 1099-G.

Re: State Tax Refund

Mike029 — Sun, 20 Feb 2022 22:02:49 GMT

Thank you. Clears a lot of questions up for me. Just seems so strange not to be taxed on a state refund.