How do I enter the Georgia $500 surplus tax refund for my 2022 taxes??

[bomeyer15]

Hi.  I believe based on the IRS ruling that I have to report our $500 Georgia surplus tax refund for 2022.  How do I enter it??  I already had a Georgia refund of $1600 entered from my 2021 GA tax refund but trying to enter a second Georgia refund gives me red errors.  Don't know how to report this as income for Turbotax Premier (Mac) 2022.  Thank you.

[DoninGA]

Georgia state tax refunds are not taxable or reported on a Georgia state tax return.

The Georgia state surplus payment is not taxable or reported on a Federal tax return if they use the standard deduction.

The IRS announced last week (Feb. 10) that Georgia's refund checks from 2022 won't be treated as taxable income for people now paying federal income taxes if they take the standard deduction.

[bomeyer15]

How do I enter it on FEDERAL?  

I itemized.  I believe I got a federal tax benefit .

• Taxpayers who took the state and local tax deduction (SALT) on their federal return and received more than the refund they would have otherwise with the standard deduction will have their refunds subject to federal taxation. If you itemized your 2021 deductions, include the special refund, in your gross income to the extent you received a federal tax benefit from the 2021 deduction. The federal tax benefit received, if any, depends on your specific tax situation. Use the federal Instructions for Schedule 1 or consult your tax advisor to determine the amount you should include in your federal taxable income.

[DoninGA]

To enter a state or local tax refund -

Click on Federal Taxes (Personal using Home and Business)
Click on Wages and Income (Personal Income using Home and Business)
Click on I'll choose what I work on (if shown)
Scroll down to Other Common Income
On Refunds Received for State/Local Tax Returns, click the start or update button

Or enter state refunds in the Search box located in the upper right of the program screen. Click on Jump to state refunds

[bomeyer15]

Yes but it already has GA state refund there from the import from 2021 ($1600).  If you click Add Another State Refund and add one for GA it gives you errors saying you already entered it for GA.

I tried this:  I edited the imported refund of 1600 to $2100 and it seems happy.  Hopefully thats the way to enter it.

[DaveF1006 · Accepted solution]

Enter this into your federal return as follows:

1. Go to Wages & Income
2. Scroll all the way down to Less Common Income
3. Select Miscellaneous Income, 1099-A, 1099-C from the drop-down
4. Select Other reportable income
5. Any Other Taxable Income? = Yes
6. Description = Georgia Surplus Tax Refund and then record the amount

[bomeyer15]

ok now we're talking.  This answer makes a lot of sense and keeps the surplus separate from the normal state refund and allows an explanation.  I split it $250 each for me and spouse since it's a joint surplus refund.  Thank you!

[RForeman98]

All I know is what I read in the newspaper and you know how trustworthy that is. So, as I understand it,  you do not need to do anything when filing your taxes. If you are due anything, they will send you the money automatically. Many RETIRED people in Georgia do not end up paying any state income tax. If this surplus is considered a "refund," and you are a retired person, then you may not get anything because many RETIRED folks didn't pay any state income tax in the first place.  I would verify this from another source more reliable than me or the newspaper. 

[bomeyer15]

I did from the GA and IRS statements.  I'm retired and pay state with my 1099-R pension.

GA: 

Do you owe federal taxes on the HB 1302 surplus tax refund?

• Taxpayers who took the standard deduction on their federal tax forms will not have their refunds subject to federal taxation.

• Taxpayers who took the itemized deduction but did not receive a tax benefit will not have their refunds subject to federal taxation.

• Taxpayers who took the state and local tax deduction (SALT) on their federal return and received more than the refund they would have otherwise with the standard deduction will have their refunds subject to federal taxation. If you itemized your 2021 deductions, include the special refund, in your gross income to the extent you received a federal tax benefit from the 2021 deduction. The federal tax benefit received, if any, depends on your specific tax situation. Use the federal Instructions for Schedule 1 or consult your tax advisor to determine the amount you should include in your federal taxable income.

IRS: IRS issues guidance on state tax payments to help taxpayers 

[rkad29]

This is clear as  mud. WHAT is the “benefit received?”

>>If you itemized your 2021 deductions, include the special refund, in your gross income to the extent you received a federal tax benefit from the 2021 deduction. **The federal tax benefit received, if any, depends on your specific tax situation. ** Use the federal Instructions for Schedule 1 or consult your tax advisor to determine the amount you should include in your federal taxable income.

[DoninGA]

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@rkad29 wrote:

This is clear as  mud. WHAT is the “benefit received?”

>>If you itemized your 2021 deductions, include the special refund, in your gross income to the extent you received a federal tax benefit from the 2021 deduction. **The federal tax benefit received, if any, depends on your specific tax situation. ** Use the federal Instructions for Schedule 1 or consult your tax advisor to determine the amount you should include in your federal taxable income.

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Did you itemize your 2021 federal deductions using Schedule A?  If not, then the GA refund is not reported on your tax return.

[garym6]

If I am required to enter the $500 Georgia tax surplus payment as income for my federal return, is it also taxed by the state?  If not, then how do I deduct it from income on my Georgia return?

[DoninGA]

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@garym6 wrote:

If I am required to enter the $500 Georgia tax surplus payment as income for my federal return, is it also taxed by the state?  If not, then how do I deduct it from income on my Georgia return?

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Did you itemize your deductions on the 2021 federal tax return?  If not, the Georgia refund is not entered on the federal tax return or on the Georgia state tax return.