2023 Arkansas Refund Deposit was less than my 2023 AR State Tax Return Amount, Now don't know which figure to use

[CindyKR]

For 2024, I realized that I had failed to pay estimated taxes to cover a Traditional IRA Conversion to a ROTH I had done in Dec 2023. Normally, that would have been covered by my deceased husbands paycheck and I just didn't think about it. So, when I went to do my taxes early, I discovered there was a way to avoid the penalty if I paid all that I owed by a certain date in January before I filed, and if I filed by a certain date. I did both those things for both the IRS and for the state of Arkansas, paying and filing electronically on 1-18-24.

The federal went through fine. But, when I got my refund from Arkansas, it was less than my return. The difference was $66.99. 

I tried calling the state and got no help. They said I owed a penalty and couldn't help me. But they also couldn't tell me how the amount was calculated. Because I didn't know who else to talk to and forgot I might get help on this forum, I just sucked it up.

But now, as I am doing my 2024 taxes, I realize I don't know what to report when it asks me what my refund was both for purposes of seeing if I need to count it as income (which I'm pretty certain I don't) or for purposes of filing my return.

Can anyone tell me what to do?

[VolvoGirl]

You might not even need to enter it.  If you took the Standard Deduction on Federal last year the state refund is not taxable and you don't need to enter it.  

[CindyKR]

I suspect I don't need it in the actual tax return because I will be doing the standard deduction. However, I was thinking I need it to file electronically or to check on my refund from the state. I believe it asks me what my last year's refund was to verify my identity. Do you know if I need it for either e-filing or for checking on my refund?

And I was also wondering if there is a way to get my full refund from last year and correct what I believe was a mistake on the state's side. 

[ThomasM125 · Accepted solution]

You would not need your prior year state refund to e-file your return as all that is requested is your prior year federal refund. You would likely need to answer your actual refund when asked about it, but if that is not acceptable you would just enter the refund amount before the penalty. If you needed to enter the refund to see if it was taxable, you would enter the amount before the penalty was added.