Virginia issued a tax rebate, how do I report this in addition to my refund, when I try it states it was already entered for the state

[DMarkM1]

If you took the standard the deduction on your federal return for TY 2021 then you do not need to enter the VA rebate amount.  It is non-taxable.

If you itemized on your 2021 tax return then add the rebate amount to your VA state refund amount as one 1099-
G.  Follow the prompts and TurboTax will calculate if any of your state tax refund amounts are taxable.  

[ramsaure]

I entered the rebate as a 1099-G and that section of TurboTax said it wasn't taxable income.  However, the Smart Check at the end says it isn't and wants me to recalculate.

[RogerD1]

Did you itemize deductions in 2024 or take the standard deduction on your Federal 1040 tax return?  If you took the standard deduction, then nothing will be taxable on either a Virginia refund or rebate.  Even if you itemized deductions last year, it is still possible that your Virginia rebate and refund will not be taxable.  Because the state and local income tax deduction for itemizing was capped at $10,000 in 2024, your refund and rebate won't be taxed in 2025 as long as subtracting those two amounts from the total state and local tax paid last does not reduce your itemizing deduction below $10,000.

For example, if you itemized in 2024 and had $11,000 of state and local taxes (including property tax), you would have only been able to claim $10,000 (because of the cap).  If the total of your Virginia 2024 rebate and refund is under $1,000 (the difference between the $11,000 of tax you could claim vs. the $10,000 you were able to claim), you will not be taxed on any of this on your Federal 1040.  Any amounts over the rebate + refund that exceeds $1,000 will be taxable income on your Federal 1040.

If TurboTax is still causing issues for you on this topic, please reply back with more detail on what Smart Check is saying "isn't".