State income tax withheld on W2 is not pulling through to federal return

[Ready2Learn]

Hello,

In 2021 state income tax was withheld from my jobs (two W2s). The withheld tax is not showing up on my federal return. I live in Georgia. How do I get the state income tax withheld in 2021 to show as a deduction (reduction of income) in my federal return?

Also, usually I pay tax on the state income tax refund amount I received in the year prior. Where do I enter the amount of state income tax refund I received last year?

Thank you so much!

Holly

[DoninGA]

State income taxes withheld are entered as an itemized deduction on Schedule A.  

The total of all your itemized deductions on Schedule A must be greater than the standard deduction for your filing status to have any tax benefit.

Standard deductions for 2021

• Single - $12,550 add $1,700 if age 65 or older
• Married Filing Separately - $12,550 add $1,350 if age 65 or older
• Married Filing Jointly - $25,100 add $1,350 for each spouse age 65 or older
• Head of Household - $18,800 add $1,700 if age 65 or older

To enter a state or local tax refund (Form 1099-G) -

• Click on Federal Taxes (Personal using Home and Business)
• Click on Wages and Income (Personal Income using Home and Business)
• Click on I'll choose what I work on (if shown)
• Scroll down to 1099-MISC and Other Common Income
• On State and Local Tax Refunds on Form 1099-G, click the start or update button

Or enter state refunds in the Search box located in the upper right of the program screen. Click on Jump to state refunds

[Ready2Learn]

Thank you for your quick response. I'll try the instructions you provided for entering last year's state income tax refund amount.

Regarding the first question, I am itemizing (not taking the standard deduction). I've searched and searched for Schedule A. How can I view it? Do I need a particular version of Turbotax?

(I can see Schedule 1 and Form 1040. On Schedule 1, Line 1, state income tax is not showing up. The state income tax withheld is not showing up on my Form 1040 either.)

Thanks for your assistance.

[Ready2Learn]

Thank you! I think I found the right place. 

It's giving me an opportunity to enter state refund from last year - perfect! It also asks for total state income tax paid for Year 2020 (not 2021). Is this correct? We should enter state income tax paid in 2020 on our 2021 return?

Thanks! Almost finished!!

[DoninGA]

When adding a state tax refund received in 2021, the refund could be for another tax year other than 2020 that is why the dropdown for other tax years is available.

If you are using the TurboTax desktop editions, click on Forms.  If the Schedule A is not listed then click on Open Form at the top left of the screen.  Type in Schedule A.  Click on the result and click on Open Form.

If you are using the TurboTax online editions, you can only view the Form 1040 and Schedules 1, 2 and 3.  To view any other forms or schedules included in the tax return you would have to pay the TurboTax online account fees firs.

[Ready2Learn]

Thank you very much!  Your response was very helpful.

One last question (I hope!).  Now that I know where to put the numbers, do I pull the numbers from my 2020 return or my 2020 amended return?  The amended return has a form 1040X (and a regular 1040 plus tons of forms after that).  I'm guessing the Form 1040X is the "final" return and I should pull the numbers from there.

Thanks for your help.  I'm looking forward to fully transitioning away from my accountant to TurboTax if I can get this figured out.

Many thanks.

[DianeW777]

The question about state taxes paid for 2020 simply means the balance due or other state or local income tax that was paid in 2021 for your 2020 tax return.  Your 1040-X would be the final return you filed for 2020.  If you also have a tax balance due on that return, in addition to your original return for your state tax, you would include both.