How do I not pay tax on returned tax payment?

[terrykgray134]

I wrote a check 4/13/17 to

PHILADELPHIA DEPARTMENT OF REVENUE for $822.00 and the money was returned, Turbo Tax Sees the returnd funds as taxable.

[terrykgray134]

I wrote the check on 4/13/17 received the refund by check 7/13/17. The $822.00 was never deducted as a tax payment. Tubo Tax provides no options.

[JulieR]

If you deducted this state tax payment on your 2017 Federal return, then the return/refund of money from the state is considered income in 2018.

[terrykgray134]

I wrote check #462 for $822.00 on 4/13/17 to the City of Philadelphia Department of Revenue  and received a refund of $822.00 by check 8/26/17 from the City of Philadelphia Department of Revenue. The $822.00 was never deducted as a tax payment. Tubo Tax provides no options.

[JulieR]

I'm sorry if I've misunderstood your question.  I assumed you were working on your 2018 return.  Are you working on your 2017 return?

[terrykgray134]

I am. It appears that the City of Philadelphia Department of Revenue has listed the $822.00 rerfund as a tax refund.

[JulieR]

Why did they refund the entire amount?

[JulieR]

Was this refund reported to you on Form 1099-G for tax year 2017?

[terrykgray134]

No

[JulieR]

In that case you do not have to report the refunded amount as income on your return.