Tax Year Prior to 2020: Total Refund Received in 2018 & Total of all your payments and withholding & 1099G

[Bob Reardon]

For #3, you said "Total of all my payments and withholding" is "your total estimated tax payments (if you made any) and your total withheld". Why are balance due payments made when filing a return not included?

Thanks!

[KrisD15]

Please be aware that you are answering a question from Tax Year 2019.

First of all, there would not be a State Tax Balance Due Payment for the same tax year in which you received a State Refund, which is what this question is about. 

State balance due is not computed because you are figuring if the prior year State Refund is taxable. (You pay a State Balance Due for Tax Year 2021 in Tax Year 2022 and so on) (In 2022 you would get a refund for Tax Year 2021 and so on)  (so you never pay a State Balance Due the same year you get a State Refund.)

You are comparing what you claimed as Itemized Deduction on the prior year Federal Return, and that prior year STATE return resulted in a State Refund. 

Your Federal return will use the state tax paid in that year as a possible deduction. Yes, you can include state tax balance due payments as well for the deduction. 

But again, if you had a balance due, you didn't get a refund.