I received a local tax refund for 2021 and need to enter my total payments and withholding. The refund I received was from my work city which I no longer worked in. I worked remote from my home in 2021, but my employer withheld for my work city. I also paid local taxes to my residence city for 2021. Which payments do I need to include in the total withholding question? Just what was withheld by my work city or do I also include my payments to my residence city?
You said " I worked remote from my home in 2021, but my employer withheld for my work city". Do you mean 2022? What state are you in? Which city are you preparing with TurboTax , work (for a refund) or residence or both?
I am going to assume that you are preparing your 2022 federal taxes and trying to itemize. The program collects state and local income taxes paid during 2022 from your forms.
Any refund or tax due that was received or paid during 2022 is added into the program manually by you, if necessary. State and local taxes are capped at $10,000 and you may have paid more with property tax, state tax, and local tax all added together such that there may not be an excess.
See directions here.
I'm preparing my federal 2022 taxes and I want to know if a local tax refund I received is taxable. I'm in Ohio. In 2021 my employer withheld local taxes for the city the company is located in. I also paid estimated local taxes to the city I lived in for 2021. As it turns out due to the pandemic, I worked from my home in 2021 for the entire year and still do. I filed for a refund of my local taxes paid to my work city for 2021 since I didn't actually work there and received one. I entered the refund in Turbo Tax, but it wants to know how much was withheld locally and paid in estimated taxes for 2021. Should I enter the total for both localities or just my work city? I have tried it both ways and in both cases Turbo tax is indicating that the refund is not taxable.
Hello I'm preparing my federal 2022 taxes and I want to know if a local tax refund I received is taxable. I'm in Ohio. In 2021 my employer withheld local taxes for the city the company is located in. I also paid estimated local taxes to the city I lived in for 2021. As it turns out due to the pandemic, I worked from my home in 2021 for the entire year and still do. I filed for a refund of my local taxes paid to my work city for 2021 since I didn't actually work there and received one. I entered the refund in Turbo Tax, but it wants to know how much was withheld locally and paid in estimated taxes for 2021. Should I enter the total for both localities or just my work city? I have tried it both ways and in both cases Turbo tax is indicating that the refund is not taxable.
You situation is still not clear, but it probably doesn't matter. State and local tax refunds are not taxable unless you itemized deductions, on your federal return, the previous year. If you previously took a deduction for local income tax paid, any refund is taxable (to balance out the deduction).