Received a local tax refund for an earlier year in which I itemized

[Anonymous]

Okay, in 2019 I received a local tax refund that was from tax year 2017. In 2017 itemized and got a deduction for state and local taxes, however in 2019 I was able to get a refund for those same taxes I had previously deducted. How do I know accurately report this refund as income in 2019? 

[ThomasM125]

You probably do need to enter that amount as taxable income in 2019, the year you received the refund. You can work through a section in TurboTax and it will help you determine if the income needs to be entered on your tax return.

Go to the Federal section of TurboTax  and find "Income and Expenses". Next, find "Other Common Income" and click on the "Show More" box and look for "Refunds Received for State/Local Tax Returns" and work through that section.

[mjweezel]

I have a similar issue. I received refunds related to both 2018 and 2017 during 2019. 2018 would not be taxable because I used the standard deduction, but I itemized in 2017 so I think that should be. TurboTax only asks me which deduction I used in 2018, so not taxable.

Is there a work around for this?

[VictoriaD75]

Under the Federal menu on the left, choose Wages & Income. Expand the menu for Other Common Income. Click Start/Revisit next to Refunds Received for State/Local Tax Returns. On the next screen, you can enter the dollar amount and other information. For the year, there should be a dropdown menu that lets you choose from 2018 all the way to Prior to 2014. You report the refund as income in the year received.