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Reporting previous year's state tax refunds
My 2019 draft filing shows an amount of state refund for 2018 lower than the actuarial 2018 filing - why?
In addition, since I took the Standard Deduction in 2018, should't the 1099-G automatically set to 0?
Thank you
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Reporting previous year's state tax refunds
Yes, If you took the standard deduction in 2018 your refund should not be taxable in 2019.
After you enter your refund in TurboTax you will see a 'State and Local Tax Refund Summary' screen. Select 'Done'.
You will then see a screen titled 'Let's See if Your 2018 State Refund Is Taxable'. Select 'I took the standard deduction in 2018'.
You should then see a screen that says; 'Good News! Your 2018 State Refund Is Not Taxable'.
[Edited 01/21/2020|7:39 PST]
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Reporting previous year's state tax refunds
Thank You for your helpful response. I realized that the previous year's refund will not be counted as income only when I saw the year to year comparison I think the screen where the refund amount is entered should indicate clearly the conditions under which it would be counted as income.
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