Received from Massachusetts in 2022 excess revenue refund check from year 2021 tax revenue collections exceeded the annual tax revenue cap, do I have to claim the refund?

[ernbarb]

Is it an additional amount that I have to claim with my State refund amount?

[MaryK4]

For income tax purposes, the IRS has decided that the Massachusetts tax refund is not taxable.  However, if you itemized your deductions and had the state and local taxes deduction, you may have to report this- in most cases if you filed your taxes before you received the special refund, it was not included as deductible taxes in 2021 so you do not report.  

[JayStevans]

But where in TurboTax do I enter the funds I received from this special excess revenue check?

[AmyC]

To enter the special excess revenue check that did give you a benefit on your federal 2021 return:

1. Log into your return
2. Go to the income section
3. Select state and local tax refunds on form 1099-G
4. Yes
5. enter the information under Tell us about your refund

The IRS states:

If the payment is a refund of state taxes paid and either the recipient claimed the standard deduction or itemized their deductions but did not receive a tax benefit (for example, because the $10,000 tax deduction limit applied) the payment is not included in income for federal tax purposes.

Payments from the following states in 2022 fall in this category and will be excluded from income for federal tax purposes unless the recipient received a tax benefit in the year the taxes were deducted.

• Georgia
• Massachusetts
• South Carolina
• Virginia

@JayStevans