Georgia State Stimulus Payment Entry??

[wesjones58]

Georgia is one of the states that received a stimulus payment in 2022 that may or may not be taxable according to an IRS press release. For Georgia, it says,

"If the payment is a refund of state taxes paid and either the recipient claimed the standard deduction or itemized their deductions but did not receive a tax benefit (for example, because the $10,000 tax deduction limit applied) the payment is not included in income for federal tax purposes."

https://www.irs.gov/newsroom/irs-issues-guidance-on-state-tax-payments-to-help-taxpayers

I did itemize my deductions, but I am confused by what it means by "receiving a tax benefit".

Supposedly, you can enter the stimulus payment in TurboTax, but I cannot find where to do that. I would think it would be found in the section "Wages  & Income" --> "1099-MISC and Other Income", but I do not see where I would report it. I did receive a 1099-G, but I do not sure if the amount of the Stimulus is included on that form.

Any ideas??

[Cynthiad66]

The Surplus Tax Refund is only exempt from federal and state taxes if you claimed the Standard Deduction or itemized your deductions, but didn't receive a tax benefit (for example, because the $10,000 tax deduction limit applied)

The above means that if you itemize your deductions on schedule A, there is a maximum of $10,000 allowed for property taxes and state and local income taxes combined.  If you have reached that maximum then the amount is not included in your income.  Therefore if you have reached that maximum then you do not need to include the amount in income.  Also, if you do not itemize but claim the standard deduction, you do not include in income.  For additional information use the link: Refund of State Taxes Paid

To enter the income, if required:  

Go to Wages and Income

Other Common Income

Other 1099G Income

If the payment is a refund of state taxes paid and either the recipient claimed the standard deduction or itemized their deductions but did not receive a tax benefit (for example, because the $10,000 tax deduction limit applied) the payment is not included in income for federal tax purposes.

Payments from the following states in 2022 fall in this category and will be excluded from income for federal tax purposes unless the recipient received a tax benefit in the year the taxes were deducted.

• Georgia
• Massachusetts
• South Carolina
• Virginia

[wesjones58]

Thanks...

Upon further research, I did determine that the amount on my 1099-G -  Block 2 "State or local tax refunds, credits, or offsets" included BOTH my 2021 State Tax Refund AND the 2022 State Stimulus payment, so I assume that TurboTax did take it into account when it determined whether any of that amount was taxable.

Also, as you said in your reply, my deductions on Schedule A did exceed 10,000, so that also confirms that the amount on my 1099-G was not taxable.

Thanks for your help.