Tax Year Prior to 2020: Schedule 2, Line 3. State tax refund reported on federal return

[SC1959]

On my federal return, I reported a refund of state taxes from Form 1099G.  However, on Schedule 2, Line 3, of my state taxes requesting the state tax refund reported on my federal return, TT entered 0.  I don't know why it's not showing my state tax refund here as reported on my federal return.

[VictorW9]

I presumed you transferred your return from last year before you start preparing the current year. If that's the case and you took the standard deduction the previous year instead of itemizing or you actually chose the option of deducting state and local sales taxes instead of state and local income taxes, then your state refund is not taxable.

[SC1959]

I didn't transfer my return from last year, but I did take the standard deduction last year.  I didn't choose the option of state and local sales taxes instead of state and local income taxes.  It seems to me that I should be able to list the state tax refund as a deduction on Schedule 2, Line 3 of this year's return, especially since it shows as a refund of state taxes on my federal return.

[Critter]

If you took the federal standard deduction in 2018 then the 2018 state refund is not taxable on the 2019 federal return so you have nothing to deduct on the 2019 state return as it was never on the federal return ... the program is completing the return correctly. 201

[BillM223]

@rek9LAw0

Do you have a question about state tax redunds?