2020 PA state refund received in 2022 - do I claim on 2021 federal tax return?

[Kylie579]

Hello!

Due to military orders and backlog, I just received (Feb 2022) my 2020 PA state refund with about $20 in interest.

Do I claim this refund and interest on my 2021 federal tax return in the income section? Or what until next year (2023)?

I can’t find much information on whether it’s year received or the year it was filed. Any help is appreciated! 

[DMarkM1]

You will enter the state refund from your form 1099g in the year you received it.  It is entered under the "Income" tab.  Scroll down to "Other Common Income" and you'll find the "Refunds from state/local taxes" topic. 

Some or none of that refund may be taxable.  If you used the standard deduction in the year for which you are getting the refund, then none of the amount will be taxable.  

If you itemized however, some of the amount may be taxable.  TurboTax will walk you through those entries to determine the tax, if any.

You may have also received a 1099-INT for the interest.  That will be entered in the "Interest and Dividends" topic. That amount will be taxable income.

[Kylie579]

I never received a 1099-G for 2021. I’m assuming it’s because the deposit was in 2022, although it should have been deposited last year. I will remove this state refund from my 2021 taxes and apply to next year?

Is it possible to have two state refunds as income all on one federal tax form? (For next year)

[LenaH]

Yes, it is possible to get two 1099-G's for tax year 2022. Please remove the refund amount for 2021 since it was not received in that tax year. 

@Kylie579

[Kylie579]

Thank you so much! You helped me out! I will wait until next year to deal with it. 😊