How do I enter a CA 2017 State Income Tax Refund reported on a 2020 Form 1099-G in TT2020 H&B desktop?

[davehamm]

How do I enter a CA 2017 State Income Tax Refund reported on a 2020 Form 1099-G in TT2020 H&B desktop?

For received Form 1099-G details entry in TT2020, Box 2 ("State or local income tax refunds, credits, or offsets") shows an amount refunded and Box 3 ("Box 2 is for tax year") shows "2017".

In TT2020, the 1099-G form forces linking out to "Federal Carryover Worksheet" but it is unclear how to enter the refund and year or link it back to the 1099-G. Any help would be appreciated.

[VolvoGirl]

Don't know why it's going to a carryover sheet.  Are you entering it in the right spot.  There are 3 different 1099G places.

Enter the 1099G under

Personal

Wages & Income 

 Scroll down to 1099-Misc and  Other Common Income

      You might need click on Show More to expand the section

Then it's the first line for Refunds Received for State/Local Tax Returns - Click Start

     You do not want the next line that says Other 1099G Income

On the first screen check YES - Received a State Refund.

But you might not need to enter it at all.  A State Tax Refund is taxable if you itemized deductions on that prior year's federal return and took a deduction for state income taxes instead of the sale tax.  You got a deduction benefit for it so now you have to include it as income. If you took the standard deduction it is not taxable and you don't need to report it.

If that doesn't get you there I can start my 2020 Home & Business program and check.  

[davehamm]

After more digging I find that what I will call "prior to the prior year" refunds are to be entered in "Part VII State and Local Income Tax Refunds from 2018 or Prior Year Tax Returns" on the "State and Local Income Tax Refund Worksheet".