2021 State Refund to Report on 2022 Return

[Anu_P]

My filing status is Single.  For 2021 tax return, I itemized deductions.

My VA State Refund for 2021 was $2167 (this is the amount reported in the 1099-G).

Now I am filing extended taxes for 2022.  Do I report $2167 or is there a calculated amount that I should report.

Can you help me calculate the correct amount.   Thank you.

[SwapnaM]

@Anu_P Thank you for the question!! So you itemized deductions in 2021. And you had  received a refund  from the state. You have to put in the refund ($2167) received in TurboTax & answer further questions & TurboTax will calculate if it is taxable in 2022. If you deducted your state and local income taxes last year and also received a state refund last year, then your state tax refund that you received from the previous year may be taxable.

[JandKit]

Hi Anu_P,

Thank you for your question today! Just to add to others who may have already been helpful, If you claimed the sales tax deduction in 2021, your refund is not taxable!

If not, you must figure out how much is taxable (Turbotax will calculate this for you). The amount taxable can be calculated using the Itemize Deductions/ Schedule A Woorksheet that's provided by the IRS. Here is the LInk:

https://www.irs.gov/instructions/i1040sca!

Please keep in mind that TurboTax will Calculate the amount taxable for you.

Goodluck to you in the coming year.