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Level 2

Question

State Tax Refund

Forum|Forum|3 years ago
December 21, 2022
1 reply
9 views

I got a state tax refund for 2021. Started doing my taxes for 2022. I itemized my deductions last year. However, I used the sales tax deduction in lieu of state income taxes withheld. Program says my refund is taxable. I disagree. Believe there should be an option for using sales taxes that would make the refund non taxable.

Level 15

If you itemized deductions on your federal return last year and received a state refund, that state refund is taxable for 2022.

https://ttlc.intuit.com/turbotax-support/en-us/help-article/tax-refund/need-report-state-local-refund-got-last-year/L1lR6HQZu_US_en_US?uid=lbx6dozy

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

Level 15

Edited to include more information

https://ttlc.intuit.com/turbotax-support/en-us/help-article/tax-refund/need-report-state-local-refund-got-last-year/L1lR6HQZu_US_en_US?uid=lbx6dozy

What other things were on your Schedule A? Did you enter any state or local property tax you paid?

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

Level 15

Review the State and Local Income Tax Refund Worksheet.

There is a spot to enter your state sales tax.

Of course if you are using TurboTax Online, never mind, you can't see worksheets.