No, it doesn't go under Miscellaneous Income, and whether it's taxable depends on whether you itemized and deducted your state taxes withheld in the year that the refund comes from.
If you didn't itemize (use Schedule A) and deduct your state taxes paid, it isn't taxable and you don't have to enter it in your tax return.
If you did itemize, it's either taxable or partially taxable. Here's how to enter it in TurboTax and figure out if it's taxable:
- Open your TurboTax account.
- Select the down arrow to the right of Income & Expenses.
- Select Review/ Edit.
- Select Start or Revisit to the right of Refunds Received for State/Local Tax Returns.
- Answer the first question Yes.
- Enter the details about your refund, or the information from 1099-G here.
- Answer all of the follow up questions.
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