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State Refunds Fully Taxable?

My husband and I filed as single for 2024 tax year, we both received state refunds, and we both itemized. We will be filing MFJ for 2025. I have entered both of our state refunds into TurboTax already. The worksheet autofills all of my husband’s 2024 information and says only his portion is taxable. It does not ask or generate a worksheet for my refund. Do I need to go in and manually adjust all the amounts by combining both of our tax return numbers?

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1 Reply
DaveF1006
Employee Tax Expert

State Refunds Fully Taxable?

Go to the Federal > Wages & Income > Other Common Income > Refunds Received from State/Local Returns section. Ensure you have entered two separate entries: one for your husband’s 1099-G and one for yours. When you enter yours, the software should trigger a set of questions about your 2024 filing status. Tell it you filed Single for that year.

 

As a result, this should create a separate State and Local Income Tax Refund Worksheet for both of you.

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