2020 TT is taxing my 2018 state refund even though I took the standard deduction in 2018

[aj9508]

I received a local income tax refund in 2020 for 2018 city taxes. (yes, I filed them late.)  I took the standard deduction in 2018.  TurboTax is taxing the refund, but I don't believe it should be taxed as the income was already taxed in 2018 and no deduction for local taxes was taken.  

When I entered my Ohio state refund for 2019, TT asked whether I itemized or not in 2019, but when I selected "Other Ohio Tax," no such question came up.  

Thoughts?

[ErnieS0]

Are both your state refunds in the State and Local Tax Refund Summary? If they are, you should see the question asking whether you itemized or not.

• Select Federal on the left column in TurboTax Online
• Click Wages & Income at the top
• Find Refunds Received for State/Local Tax Returns. Edit
• If your 2018 and 2019 refunds are on the screen, hit Done and select "I took the standard deduction in 2019"
• Otherwise, add your other refund and do the step above

[aj9508]

It only asks that question about the 2019 refund.  When I say I took the standard deduction, it says "Good News - not taxable" but it doesn't ask about the other years and it taxes all of the other years.  I think I might lie and say they are all 2019... I hope that doesn't get me in trouble, but that's all I know to do to get the tax right.