Over payment of state taxes

[RB561]

I downloaded my 1099R 's and over paid my state taxes. I would like to adjust this amount on Line 5, Itemized Decuctions, Schedule "A" to actual taxes owed as it will allow me to take the standard deduction and not have to file schedule A. How is this done? Also, what are the implications for next year?

[MinhT1]

If you take the standard deduction in 2020, you do not itemize your deductions and your state tax is not entered on your federal tax return at all. There is no schedule A in your tax return.

In 2021, you will receive your state refund for 2020 and you do not need to enter it on your 2021 federal tax return next year because you did not draw any tax benefit from state tax in 2020.

[RB561]

But there is a schedule A generated because I went over the $12,400 standard deduction threshold by a few hundred dollars.

[DawnC]

If you had federal withholding deducted from your 1099-R distributions in 2020, you will receive any overpayment of state taxes when you file your 2020 state tax refund this year.   Make sure that you enter the state tax withholding boxes from your 1099-Rs.   

If you don't want to itemize deductions (and not worry about claiming your state refund next year), you can tell TurboTax that you want to take the standard deduction instead.   Use the instructions in the link below to change your deduction to the standard deduction.  

How do I change from the standard deduction to itemized (or vice-versa)?

Even when your refund is taxable, it may not be the entire amount. It depends on how much the deduction affected your refund or tax bill.  So, it still may be more beneficial to use itemized deductions.   But, it is your choice.