State Tax Refund -- input questions

[Yepper22]

2019 TurboTax could be a bit clearer, in my opinion, in how it describes some of the information needed in the income section for State and Local Tax Refunds on Form 1099-G.  I have a couple of questions in that area that I hope someone can help me with:

1. In the page titled “Tell us about your refund”, TurboTax ask for the “Total of all your payments and withholding”.  I should input the amount of state and local income taxes paid and withheld in 2018 – correct?  Sales tax and real estate tax should be excluded – correct?

1. In the page titled “Let’s look at Line 5 of Your 2018 Tax Return”, TurboTax asks us to “Enter the amount of 2018 state and local taxes paid”.  Is this the amount from Schedule A Line 5a, 5d, or 5e?

Thanks.

[KrisD15]

5a. 

The state refund is only claimed if you claimed Itemized Deductions on the previous year's return. 

Even then, all or only part of the refund might need to be claimed. (it has to do with how much impact the tax claimed affected your Schedule A total) 

TurboTax does the calculations but needs several pieces of information.

It is a bit confusing. 

[Yepper22]

Thanks, KrisD15, for the answer to the second question (Line 5a on Schedule A).

Do you know the answer to my first question?  Is TurboTax looking for only state and local income taxes paid and withheld in 2018?

Thanks again...

[KrisD15]

Yes, whether the refund is taxable will be based in part on the state INCOME tax you deducted. 

But you don't need to know if it was sales tax or income tax when you enter it, just enter the number from the 2018 Schedule A line 5a. The program then asks if the box on line 5a is checked. (if it is, you used sales tax and the refund is not taxable) 

Hope this clears things up. 

Thank you for using TurboTax.

[MLTKJohnso]

Why doesn’t Turbo Tax automatically populte the “Total Refund Recevied in 2019” and the “Total of all your paymetns and withholdings” from last year’s TurboTax file?  IN 2019, I had withholdings and paid state taxes for 2018 and then I filed an amendment and recived a refund.  Do I put the refund amount in the “Total Recieved…” box and the sum of hte withholdings and amount paid in the second box?

[KrisD15]

Yes, but be aware that if you did not Itemize on your 2018 Federal tax return, the refund is not taxable and you do not need to enter it. 

[SNewman6]

TT has had this unclear language for this screen for years  this post was about 2018 but TT 2022 also has comparable language. Most likely many users have filed taxes incorrectly because of it since it's not clear if line 5a, 5b, or the total of the 5s (5d) is wanted here by TT.  If the program wants only the 5a state and local taxes paid number, why doesn't TT change the line:

"Enter the amount of 2021 state and local taxes paid" 

to:

"Enter the amount of 2021 state and local income taxes or general sales taxes paid"

OR to:

"Enter the amount of 2021 state and local taxes paid from line 5a of 2021 Schedule A"