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Returning Member
posted Jan 18, 2020 8:19:05 AM

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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2 Replies
Expert Alumni
Jan 20, 2020 2:16:16 PM

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]

 

Returning Member
Jan 21, 2020 5:42:27 AM

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.