Hi,
I started my taxes and noticed a 1099g for 2022 with the wrong amount. It's half of what was direct deposited. More confusing is I didn't itemize nor deduct my state and local taxes. I checked my answers in turbotax and noticed that I've been entering my state tax refund, take general sales tax deduction and vehicle registration fee for awhile. By clicking on learn more, I saw that I didn't need to if I was taking the standard deduction. My 1040 doesn't have this info that I can see. It has the standard deduction and NO Schedule A. The weird thing is I saw that for a long time Turbotax has filled the boxes on Schedule 540 reserved for Schedule A info. What's stupid is this one box can hold State and Local taxes and general sales tax. Only the former triggers 1099g sent to me. Turbotax always fills in the number for standard deduction on Form 540.
So my plan is to report the amount I actually received, but continue taking the standard deduction. I will no longer enter general sales tax and vehicle reg fees. I will add a note about this and call the California Franchise Tax Board about the incorrect amount. One more thing, I amended my fed and state to include its interest income on Form 1099int.
Often people like to enter all their deductions (like sales tax, vehicle registration, etc.) even though they know they will be using the Standard Deduction.
This is because some states will give a credit for some of these deductions, even though they are not claimed on the Federal return.
Also it helps the taxpayer keep track from year to year, if the Schedule A is filled out, but not filed with the tax return.
The reason there is one box for State and Local Tax and for Sales Tax is that you can claim one or the other (whichever is larger), but not both.
Since you use the Standard Deduction, your State Tax Refund will never be taxable; you are just reporting.
It's good that you Amended to add your 1099-Int income.
Here's more info on Standard vs. Itemized Deductions.