1099-G NJ State taxable or not taxable input screen

[bkgrant10]

My wife and I got married in 2021 and filing our 2021 taxes as MFJ. Last tax year, 2020, I used TT and filed Single and my wife also filed Single using a different tax software. When we get to the section pertaining to the calculations if our 2020 State Tax Refunds are taxable, ie the amounts of our 2020 State Refund and the Total Payments , I combined both of our 2020 State Refund checks and our 2020 State Payments Tax amounts. The next screen wants to determine if these amounts are taxable so it brings up Form 1040 of 2020 for me to verify the information however it's bringing up MY information from 2020 considering I used TT and my wife did not. It's showing me my AGI, my itemized deduction, my regular tax, tax after credits, my state and local income tax and the state and local tax after limitation $10,000.  It then asks me if my 2020 federal return is correct? Yes, my information is correct but obviously it does not take into account my wife's information. Do I say no it's not correct and manually redo all of this information? ie take my AGI and add her AGI to it, take my itemization amount and add her itemization amount etc etc ? Or simply put, leave it alone and let TT calculate if our "combined 2020 State Refund amounts" are taxable based on my transported 1040 information?

[HelenC12 · Accepted solution]

If both you and your wife did not itemize your deductions in 2020, then your state tax refunds are not taxable in 2021. Answer the onscreen interview based on your tax information that was carried over.

If either one of you itemized your deductions in 2020, generally the state refund that was a result of itemized deductions, is taxable. If you itemized your deductions, don't enter your wife's state refund amount and answer the onscreen interview based on your tax information that was carried over.

If both of you itemized your deductions in tax year 2020, enter both state refunds, and combine the requested information as you go through the TurboTax onscreen interview.

Source: IRS