Local city wage taxes were taken out of my pay and included on my W2. During the 2020, I worked from home and applied for and received a wage tax refund from the city. How do I account for the refund on my Fed, State and local tax filings?
We'd love to help you complete your tax return, but need more information. Can you please clarify your state, as well as the locality in which you paid taxes and got a refund?
Yes - PA and wage tax refund was for Philadelphia (related to tax withheld for 2020)
Unless you itemized deductions and claimed those taxes as a state/local tax deduction, you do not have to report the refund on any tax return - federal or state.
Should I expect to get a 1099-G from Philadelphia that I would need to report on my 2021 return?
If you received the refund in 2021, you may get a 2021 1099-G from Philadelphia. It depends entirely on the city tax office's policies and procedures in matters like these.
Again, you only need to report state and local/city tax refunds if you claimed a state/local tax deduction on your federal return.
Just so I am clear:
I filed a 2020 federal tax return that includes on 1040 schedule A an itemized deduction for state and local income tax on line 5a.
In 2021, I received a reimbursement of Philadelphia, PA city wage tax I was paid for time in 2020 working remotely from home not in the city of Philadelphia.
Based on ToddL99's message indicating "you only need to report state and local/city tax refunds if you claimed a state/local tax deduction on your federal return", do I now need for my 2021 federal and state tax return to add the amount of the refund as additional income?
Yes, you will need to claim the refund amount as income. You should be getting a 1099 G that you will just enter into the income section of TurboTax. You will enter it under Other Common Income. Tax Refunds or 1099 G.