interest refund

[garryfolkerts]

I received interest payment from the IRS and  Virginia due to overpayment on my 2020 taxes. This is income. How do I report this on Turbo Tax?

[Mariani54 · Accepted solution]

Interest income needs to be reported on Schedule B under the forms section or under the interest income section of the step-by-step process.

[MayaD · Accepted solution]

Report interest received from IRS and VA as interest income on your 2024 Federal return. Information will carry over to your state return. If you moved out of VA, the interest income will be taxable in the state you lived in when you received it. 

In TurboTax desktop:

1. Open or continue your return.
2. Select Federal, then Wages & Income.
3. Scroll down to Interest and Dividends, then select Start or Revisit next to Interest on 1099-INT. 
4. Select Yes on the screen Did you receive any investment income? then Continue.
   • If you see the screen Your investments & savings or Here's your 1099-INT info, select Add investments or Add another 1099-INT, then Continue.
5. On the next screen, skip Import and select Interest on the following screen. 

In TurboTax Online.

1. Open or continue your return.
2. Select Federal, then Wages & Income.
3. Scroll down to Investments and Savings1099-B, 1099-INT, 1099-DIV, Crypto Gain/Loss Report then Interest on 1099-INT.
4. Select Yes on the screen Did you receive any investment income? then Continue.

• If you see the screen Your investments & savings or Here's your 1099-INT info, select Add investments
• Select Enter a different way and Select Interest.

[garryfolkerts]

the response was exactly what I needed