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tle1234
Returning Member

Change of status from non-resident to resident. How should I determine if my state refund for 2019 is taxable?

Hi,

 

I filed form 1040-NR for the tax year 2019 but will have to file 1040 for 2020. I got form 1099-G from my state listing the refund amount I got. I don't know how to enter this information on Turbotax, since it asks for information from schedule A of form 1040, which is different from schedule A of 1040-NR. My question is, how do I determine if this state refund is taxable and how should I enter it? Thanks a lot

3 Replies
Irene2805
Expert Alumni

Change of status from non-resident to resident. How should I determine if my state refund for 2019 is taxable?

If you took the standard deduction on your 2019 federal return, you state refund is not taxable.

 

If you itemized deductions, it may be taxable.  TurboTax calculates the "tax benefit" you received from the deducting the total state taxes withheld in the previous year.

 

 

To enter your state refund, reported to you on Form 1099-G, please follow these steps:

  1. Click on Federal > Wages & Income
  2. In the Other Common Income section, click on the Start/Update box next Refunds Received for State/Local Tax Return.
  3. On the screen, Did You Get a State or Local Tax Refund Last Year? click the Yes box.
  4. If you used TurboTax to prepare your 2019 return, you may see a screen, Your 2019 State and Local Tax Refunds.  Click the appropriate box and then click Continue.  
  5. If information from a previous year return did not transfer over, you will see the screen, Tell us about your refund.
  6. Enter the information about your refund. 
tle1234
Returning Member

Change of status from non-resident to resident. How should I determine if my state refund for 2019 is taxable?

Hi, thanks for the reply. The problem is that TurboTax is asking for information on 1040, but I didn't file 1040 last year. I filed 1040-NR since I was considered a non-resident for tax purpose for tax year 2019. How should I input this form?

Irene2805
Expert Alumni

Change of status from non-resident to resident. How should I determine if my state refund for 2019 is taxable?

Enter the requested information from your 2019 1040-NR.  The line numbers may differ from those stated on the screen, but the information should be similar.  For example, the Schedule A for the 1040-NR is itemized deductions, similar to the 1040, but with less categories. 

 

TurboTax will determine how much benefit you received from deducting all the state tax last year and calculate how much (if any) of the state refund is taxable.

 

 

 

 

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