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Filled in my State Tax Refund received in 2020 and need to compare my 2020 taxes

First of all, I am concerned that all the answers have to do with 2019.  I am filing my 2020 taxes.  I came to the section that asked for FORM 1099G which is my State Tax refund.   I input the amount from FORM 1099G.

Then Turbo Tax asks me to check if what they have for 2019 taxes is correct.  It is NOT correct - and I don't know how to fix it.  What do I do?  I have a statement that explains form 1099G - but not what is shown on the next page.

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1 Reply
KrisD15
Expert Alumni

Filled in my State Tax Refund received in 2020 and need to compare my 2020 taxes

When you receive your 2019 tax year State refund, the refund is usually received in 2020. The amount of the refund may or may not be considered as taxable income on your 2020 tax year federal return. 

IS IT TAXABLE INCOME? that depends.

IF you claimed the Standard Deduction on your 2019 tax year, no, it is NOT taxable. It won't be reported on your 2020 tax year return. 

IF you Itemized Deductions on your 2019 tax year return, it COULD be taxable income on your 2020 tax return. 

     Did you use the State Income tax paid as a deduction? Then no, it isn't.

     Did you use the State Sales tax paid as a duction? Then yes, at least part may be taxable. 

 

TurboTax is asking about your numbers from your 2019 tax return so it can determine if the 1099-G is taxable on your 2020 tax year return. 

 

The information on that screen is showing 2019 information as it should. You can verify the information by looking at your 2019 tax year return. 

 

I hope this clears up the confusion. 

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