NY State last year refund showing in 2022 incorrectly

[jobo_bobo]

Hello Everyone

I am preparing my current tax year 2022 TurboTax desktop file and I see that TurboTax added automatically a 1099G form from my last year's refund from New York state (after importing last year's 2021 turbotax file). Problem is, that my actual state refund amount shows a different higher amount for last year on my tax forms and I did take state standard deduction (I didn't itemize). The issue I am describing is shown under "Federal Taxes" -> "Wages and Income" -> "1099-MISC and other common income" -> "State and Local Tax Refunds on Form 1099G". Why is it there since in the explanation of the item it says that one of the three conditions (all three must be fulfilled btw) is that one must be itemizing their deduction and I did not.  Please help. Thanks! 

[DoninGA]

If you did not itemize your deductions in 2021 then you do not need to enter the NY state tax refund for tax year 2021 on your 2022 federal tax return.

However, if you do want to enter the state tax refund and the amount is different then what was calculated in TurboTax for the 2021 state tax refund then you can change the amount you actually received.

[jobo_bobo]

Thank you @DoninGA . No, I didn't itemize it. Also, I just realized that TurboTax asks me a follow up question if I did or didn't itemize last year and then informs me that this state refund is not taxable. So, does this mean I can safely either put the correct amount or, even better, completely delete this entry so that it doesn't confuse me? Also, if turbotax by importing the last year's file, "knows" I didn't itemize and "knows" the correct amount, why is it pulling the item in incorrectly with a wrong amount and then just leaves it there for no reason? Seems like a silly thing to do.

[jobo_bobo]

Thank you @DoninGA 

[DoninGA]

The program only knows what was on your 2021 tax return based on the 2021 tax data file you transferred to the 2022 return.  It cannot know if the state refund amount was ever changed by the state after filing the 2021 state return.  The program also asks again about the standard and itemized deduction because it does not know if the 2021 federal tax return was amended which may have changed the type deduction taken on the amended 2021 return.