If you used TurboTax last year, we will transfer those amounts to this year's tax return. You should verify the amount is correct and go through the state and local refund screens to ensure everything is correct. You can check with the state or as suggested above, look at your 2018 tax returns which can be found at the bottom of the Tax Home page in TurboTax Online.
If all three of the following are true, your refund counts as taxable income:
- You itemized deductions last year, instead of taking the standard deduction
- You claimed state and local income taxes (not general sales taxes)
- Claiming the deduction helped you increase your federal refund or lower your tax bill
Even when your refund is taxable, it may not be the entire amount. It depends on how much the deduction affected your refund or tax bill. Just answer a few simple questions about last year’s refund, and we’ll calculate the taxable amount for you.
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