How do Oklahoma tax filers enter a 1099-G specifically related to the Parental Choice Tax Credit in the federal portion of "Wages & Income" in Turbotax?

[joduser]

Within Turbotax, Box 2 in the 1099-G section is listed as a "Business or Farm Refund" whereas the Parental Choice Tax Credit is a state tax credit for private or home school tuition.

[NicolleR]

Since The Parental Choice Tax Credit is a refundable credit, it is considered a state income or local tax refund, and will be reported under Refunds received for state/local tax returns. 

Follow the instructions bellow to report your 1099-G:

TurboTax Online

• From the Tax Home, select Income, and then +add income at the bottom. 
• Locate the Other Common Income section, and select the first option for Refunds received for state/local tax returns

TurboTax Desktop

• From the Federal Taxes tab, select Wages and income
• Locate the 1099-MISC and Other Common Income tab and select State and Local Tax Refunds on Form 1099-G

[joduser]

If this is the case then there is an additional problem.

On Turbotax online you must chose the tax year of the refund where 2023 is the latest option.

However Oklahomans received the tax credit in 2024.

[ThomasM125]

The Parental Choice Tax Credit is really just a grant issued by the state, as it does not have a direct relation to your state income tax liability. As such, you should report it in the 1099-MISC section as mentioned by @NicolleR . You should then choose the Taxable Grant option on the screen that says What Type of Payment Did You Receive?