I am trying to finish my 2024 Tax return but I can't get past the review of my State and Local refund worksheet. Turbo Tax states I used the standard deduction for 2023.

[gregory_sigman]

turbo Tax stated the Standard deduction would be best for 2023.

[xmasbaby0]

IS MY 2023 STATE OR LOCAL REFUND TAXABLE?

If you used standard deduction for your 2023 tax return, you do not have to enter a state or local tax refund you received in 2024.   If you itemized deductions then your state or local refund that you claimed on the 2023 return----and received in 2024---must be entered as taxable income on your 2024 return.  If you  are not sure if you itemized for 2023, look at your 2023 Form 1040 line 12.   Do you see the standard deduction amount or something else?

2023 STANDARD DEDUCTION AMOUNTS

SINGLE $13,850  (65 or older/legally blind + $1850) 

MARRIED FILING SEPARATELY $13,850  (65 or older/legally blind + $1500)

 MARRIED FILING JOINTLY $27,700  (65+/legally blind) )  + $1500 per spouse

 HEAD OF HOUSEHOLD  $20,800 (65 or older/blind)  + $1850)

If you need to enter a state or local refund Go to Federal>Wages & Income>1099-Misc and Other Common Income>State and Local Tax Refunds on Form 1099-G

[VictoriaD75]

If you itemized deductions, because the state income tax is deductible, any refund from the state would have to be reported as income the following year. If the software asks you if you received a refund from the state, and you used the standard deduction, simply answer "no" to see if this clears the issue and allows you to continue. If you took the standard deduction in 2023, any refund received is not taxable and does not need to be reported on your return.