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Is state tax refund under income section of turbotax means the overpaid tax of prior year?

Hello,

I am working on my tax return of 2023.

under the income section, there is :  other common income---tax refunds(refunds received from state/local tax returns)

"Did you get a state or local tax refund in 2023?

If you did, you may receive a 1099-g( it's OK, if you didn't get this form though)

 

yes     no."

 

I got tax refund in 2023 which is overpaid tax when I filed my tax of 2022. I only have 1099-g for unemployment, I do not have any other 1099-g regarding tax refund. I took standard deduction in 2022.

 

Shall I answer Yes  or No here?

 

Thanks

 

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2 Best answer

Accepted Solutions
DMarkM1
Employee Tax Expert

Is state tax refund under income section of turbotax means the overpaid tax of prior year?

You can answer either way since you took the standard deduction for the year of the refund. It will not be on your return either way.  If you answer, "No" of course the interview ends and there is no taxable income.  

 

If you answer, "Yes" you will be asked What amount? and What state? and after that Did you itemize?.  You will then answer, "No" and the refund will not be taxable or included on your return.

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ee-ea
Level 15

Is state tax refund under income section of turbotax means the overpaid tax of prior year?

4 Replies
DMarkM1
Employee Tax Expert

Is state tax refund under income section of turbotax means the overpaid tax of prior year?

You can answer either way since you took the standard deduction for the year of the refund. It will not be on your return either way.  If you answer, "No" of course the interview ends and there is no taxable income.  

 

If you answer, "Yes" you will be asked What amount? and What state? and after that Did you itemize?.  You will then answer, "No" and the refund will not be taxable or included on your return.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

Is state tax refund under income section of turbotax means the overpaid tax of prior year?

So the key point is as long as I took standard deduction last year, the overpaid state tax( or tax refund  from state) previous year will not be counted as taxable income this year, right?

Thanks.

ee-ea
Level 15

Is state tax refund under income section of turbotax means the overpaid tax of prior year?

@danilol   You are right.

Is state tax refund under income section of turbotax means the overpaid tax of prior year?

Thanks.

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