Refile for 2023 state taxes, New Jersey and New York to exempt tax from government interests

[hero123]

Hi

I just discovered in TurboTax 2024 about the state taxes on government interests that derived from money market mutual funds. I am very disappointed with TurboTax as it should have prompt us about entering the government interests on previous years as some states do not tax the government interests given that they should know I am filing both New Jersey and New York State Tax and I have investment incomes. I have used TurboTax for 10 years...

I have adjusted my TurboTax 2023 state tax in regards to the government interests and I saw I can save a few hundreds of dollars. Should I refile for 2023 or how complicated to refile for 2023 given that I have to allocate the government interests to both New Jersey and New York State Tax.

Tks

[AmyC]

You need to choose to amend your 2023 file. See  How do I amend my federal tax return for a prior year? and select to amend the states as well.

Next, you will make the adjustments in the federal or state section, probably like you did this year.

It would not take me long because I know the program and my guess is that once you select amend, you will also find it isn't hard to amend.

Reference: How do I amend my state return?

[hero123]

I see I can only get back around $80 for prior year, 2023 if I refile through claiming back the government interest from money market fund. Should I do it or simply skip it to avoid IRS audit and the hassle?

Thank you

Leo

[hero123]

TurboTax doesnt allow efile for amended tax returns for federal, NY and NJ returns for 2023? It asked me to mail. 

[MonikaK1]

The IRS allows you to e-file amended returns for the current tax year Federal return and the two prior tax years if your original return was also e-filed. For older tax years, you'll need to file by mail.

See this help article for instructions to amend your Federal return for a prior year return.

To find your previous years' returns, in TurboTax Online:

When you first open your return and see "let's keep working on your taxes", scroll down to the section "Your tax returns and documents". If you prepared your 2021 tax return in TurboTax, in the same account, you should see "2021" listed among the documents you can select to view. If you used a different TurboTax account for 2021, you would need to log in to that account to view your return. See this help article for more information.

If you need to amend only your state return, please see this help article for instructions for both TurboTax Online and TurboTax Desktop.

See this help article regarding which states allow e-filing of amended returns. They may also require that the original return have been e-filed.