MA 1099-G (state tax refund due to Chapter62F) for the year when I owed the state tax: how to report in turbotax for Federal (total of all your payments and withholding)?

[jeahn94]

I want to enter the correct information as to 1099-G for the tax year of 2021. During 2021 state tax return, I owed and paid the amount I owed. But in 2022 November, I got MA tax refund (Chapter 62F). So for Turbotax Federal, I need to provide: 1) Total Refund Received in 2022, for which I entered the amount of refund as in 1099-G. But for 2) Total of all your payments and withholding, should I add the state tax withheld in my 2021 W2 plus the amount I owed the state; or add the state tax withheld in 2021 W2 plus the amount I owed minus the refund in 1099-G? I tried the first way but as it proceeds, it did not look like Turbotax understands this situation correctly. I am not sure the 2nd way will do right because it is about total of my payments. So please help. Thank you in advance.

[DaveF1006]

No, you will enter the state tax that was withheld on the W2 and not the tax that was owed by the state minus the refund. in this scenario, the program only asks what amount of state tax that was withheld on the W2 & 1099 G (if tax was withheld on this form.  That's it !!

[JuRo2]

I would like to expand on this question.  I also received a Chapter 62F refund in 2022 for 2021 tax year.  I also retired in 2021 and moved to NY. I did not receive an 1099G for this refund. How do I enter this into my 2022 taxes in turbotax?

[MarilynG1]

The IRS recently stated that the Massachusetts rebates are not taxable on your Federal tax return, so need to report it.

Click this link for more info on State Tax Rebates.

@JuRo2 

[robertoabrahao]

Hi,

I've received a letter from the NJ Division of Taxation saying that my MA Chapter 62F refund may impact the credit for taxes paid to other jurisdictions I claimed on line 43 of my 2021 NJ-1040, and may require me to amend my New Jersey return and pay additional tax due.

More information here: https://nj.gov/treasury/taxation/individuals/masscoj.shtml

In that case, how can I confirm in TurboTax if an amendment is really required and how to calculate the amount?

Thanks,
Roberto

[RobertB4444]

You can open your account and select "amend a previously filed return" and then go in to your 2021 New Jersey return and adjust the tax credit.  See if it changes the amount due.  If it does you need to file the amended return.

@robertoabrahao