Colorado 1099-G TABOR Handling

[jaked2332]

In 2024 I itemized my deductions. This year I received a 1099-G form with a refund amount listed as less than the what I actually received. The difference is due to the TABOR State Sales Tax Refund

I understand from other posts about this that TurboTax does not handle this correctly and you must use what is on the 1099-G when filing.

However, TurboTax asks two questions:
1. Payment and Withholdings

2. Amount of Refund

Do I also need to update "Payments and Withholdings"? TurboTax initially used Line 30 of my State Return which is the subtotal before AGI for TABOR

[KrisD15]

Yes and No.

Yes. Amount of refund is the amount reported on Form 1099-G

No. Payments and Withholding is NOT listed on line 36 of your Colorado return. 

Payments and Withholding is the amount of state tax you claimed on your 2024 FEDERAL return. It may be listed on your Schedule A, but be aware of the SALT limit for tax year 2024. You may have 10,000 on your 2024 Schedule A, but really had paid 12,000 in state tax such as property tax.

[jaked2332]

@KrisD15 Thank you for your reply!

Understood on using the refund amount from 1099G

The amount turbotax autofilled for "Payments and Withholding" was that of line 30 from my State return. This differs from my schedule A amount by ~$70

That said, the amount that was autofilled also appears earlier in my State return as "Colorado Tax Withheld, Payments, or Credits from your Colorado return" and turbotax's help section indicates most of the information for "Payments and Withholdings" can be found on my state refund.

So, It seems I should keep it as the original value TurboTax autofilled and only change the refund amount as you noted