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Maryland Form 502: Line 8 - last year's refund not listed
In my 2019 filing, Turbotax did not include any amount on Maryland Form 502: Line 8. In each of the the forms from the last few years, Line 8 always was the previous year's state refund amount.
Is there a reason why last year's state refund wasn't listed this time? Or was it an error (user or software) and the 2018 refund amount should be entered there?
Also - I filed the return. If this was an error and Line 8 should have the amount listed, does that mean I should file an amended return? (Once the dust clears from this initial filing).
Thanks in advance for any help.
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Maryland Form 502: Line 8 - last year's refund not listed
The instructions for line 8 for form 502 say (see page 7), "Line 8. STATE TAX REFUNDS. Copy onto line 8 the amount of refunds of state or local income tax included in line 1 of Form 502."
Thus, if your state tax refund was not considered taxable on the federal return, it won't be in your federal adjusted gross income (line 1 on form 502), so will not appear as a Subtraction for Maryland.
A state tax refund this year is not taxable if you did not use that tax last year (or whatever year it was from) for a tax deduction. For example, if you took the Standard Deduction last year, you did not get a tax deduction for the state tax last year, so the refund of that tax this year would not be taxable on the federal return.
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Maryland Form 502: Line 8 - last year's refund not listed
Ok, got it. Thanks for your time in answering.
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