2019 SALT

Forum|Forum|5 years ago
January 20, 2021
3 replies
12 views

When I filed for 2019, I used the Turbotax default and deducted State Income Taxes on Schedule A. I just got a 1099G from my state indicating that the resulting refund is income. However, it turns out that the Sales Tax deduction would be greater than the state income tax anyway. What can I do. Must I file an amended return?

DavidD66

Level 15

If deducting your state sales tax would have given you a larger deduction than the State Income Tax you paid, you would have to file an amended return to take advantage of that increased deduction and receive an additional refund. You can do so in TurboTax. Start by clicking on How do I amend a 2019 return in TurboTax? You mentioned that you received a Form 1099-G indicating your state tax refund was taxable. This will be the case if you claim the sales tax deduction as well.

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cpjonesAuthor

Level 2

When I set Turbotax to use Sales Tax in lieu of state income tax, it gives me a lower value than when I use the IRS tables. What value is turbotax using? Can I overrride the Turbotax suggested value and input my own?

DMarkM1

Level 15

Yes, in TurboTax Online versions, when you "Start" the 'Sales Tax' topic in the "Deductions & Credits" interview you are presented with an option to "enter your sales receipts." You can select that option and enter your total sales taxes paid.

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