What is "total of all payments and withholding" in TT screen for 1099G state refund?

[CandoDiga]

In 2017 I got a 1099G for a state tax refund.

The state tax refund was on my 2015 return (not my 2016 return, which would've been the more common case).

TurboTax asks for "total of all your payments and withholding", and the help link tells me what items to include when computing the total amount.

Should I add up all those items from my 2016 return or from my 2015 return?

[PatriciaR · Accepted solution]

If you are referring to the screen related to refunds received for state/local tax returns, this information is used to help determine if the state/local refund received is taxable in the current tax year.

Many states or localities even have a similarly labeled line that is a total, such as Total payments or Total payments and credits.

Total of all your payments and withholding  is the total amount you paid to the state or locality you selected on the screen for the year you selected under Tax Year of Refund (usually 2016). Thus, if you received the refund and related Form 1099-G in 2017 but the amount was for "Tax Year of Refund" 2016, then you would enter "Total of all your payments and withholding" for tax year 2016.

The amount would not include federal, social security, and Medicare taxes withholdings. You should be able to find this information on your state or local tax return(s) for the "Tax Year of Refund". " Depending on the state or locality, "Total of all your payments and withholding" may include the following:

·         Amounts withheld on your W-2, W-2G, and 1099

·         Estimated tax payments for 2016. Add any paid in 2017 for 2016 (it's common for the 4th quarterly payment to be made in January)

·         Overpayment from 2015 applied toward your 2016 return

·         Payment made with an extension of time to file

·         Payment made when you filed your return

·         Refundable credits

[CandoDiga]

Thank you. The answer then is to use my 2015 return.

[baderd]

Thanks that's much clearer that the text on screen.  Question though, it also says to add in taxes paid to local and municipal entities.  Would that include my property taxes for the prior year as well?

[terribleattaxes]

I didn't receive a 1099-G form and so I looked up the total refund received from a previous year's tax forms.  However on the TT page, it asks for "Total of all your payments and withholding."  Where would I find this on either a W-2 or on previous year tax form (what specific line item)?  I switched employers mid-year, and so I wonder if I have to add certain amounts.  I would appreciate the advice.  

[jrvillar64]

145.00

[JoannaB2]

No, you don't add up your 1099G.  You need to enter the 1099G forms receiced one at time.  On the question, " Total of all your payments and withholding" mean total of  payments made to local state of locality from the prior tax year/s including any paid in 2020 for 2019. You may click "What does this include" for more information. 

Here's the screenshot:

[JoannaB2]

No, you don't add up your 1099G.  You need to enter the 1099G forms received one at time.  On the question, " Total of all your payments and withholding" means total of  payments made to local state or locality from the prior tax year/s including any paid in 2020 for 2019. You may click "What does this include" for more information.

Here's the screenshot:

[Bob Reardon]

Hi,

You said that Total of all your payments and withholding includes "Payment made when you filed your return." However, TT's pop-up instructions says "Do not include balance due payments made with (or after) filing a return." Is TT wrong?

Thanks!

[KrisD15]

No, TurboTax is not wrong unless you somehow received a State Refund AND made a State Balance Due Payment for the same State in the same year. 

This would be very uncommon if not impossible since even if somehow a Taxpayer received a State Refund, and then amended the state return and owed a State Tax Balance Due which they then paid that same year, the State would adjust the 1099-G to reflect that and only report the final amount refunded. 

[billychuck]

So, even though I included the taxes deducted from our wages on the state tax return for last year, I use that same amount for "total of all your payments and withholdings" section for this years tax return?

[MarilynG1]

Yes, in order to determine if your 2022 State Tax Refund is taxable this year, you need to enter last years 'payments and withholdings'.

If you used TurboTax last year and transferred your file into 2023, this amount may be filled in for you.

In general, though, if you didn't itemize last year and are not itemizing this year, your State Tax Refund is not taxable.

Here's more info on Is My State Refund Taxable?

@billychuck