OMB No. 1545-0120

Forum|Forum|2 years ago
April 7, 2024
2 replies
23 views

Interest paid on tax refund for state

TurboTax Live Basic Online

VolvoGirl

Level 15

You got interest? Just enter it as interest.

They don’t have to send you a 1099-INT for less than $10 but you must report all your income. Make up a 1099-INT for it and put the amount in box 1. On the Let Us Enter Your 1099 page go down to the bottom and pick Enter a different way

Federal
Wages & Income
Interest and Dividends
Interest on 1099INT - Click the Start or Update button

Put the interest amount in box 1

VolvoGirl

Level 15

OK I looked it up. That is a 1099G. Where do they show interest on it? What box is the amount in? Box 2 is for a state tax refund. A State Tax Refund is taxable if you itemized deductions on that prior year's federal return and took a deduction for state income taxes instead of the sales tax. You got a deduction benefit for it so now you have to include it as income. If you took the Standard Deduction it is not taxable and you don't need to report it. Check your 1040 line 12 to see which deduction you took.