If your prior-year state and local refund summary appears to be incorrect, you can try doing this:
- Go to Federal
- Select "Wages and Income"
- Under the section "1099-MISC and Other Common Income"
- Scroll to "Refunds Received for State/Local Tax Returns"
- Select "Revisit"
- If there is an entry there, delete it
- Try entering your Form 1099-G for your state refund again.
Keep in Mind:
If you took the standard deduction for 2023, the best solution is to not enter the 2023 refund at all. There is no need to enter it. It does not get reported anywhere on your tax return if it's not taxable.
The state and local tax refund worksheet determines how much of your state refund from last year (received in the current tax year) is taxable on your federal return.
If you didn't itemize deductions on your prior-year return and deduct these taxes paid, then they will not be taxable on your return this year.
Taxpayers who itemize their deductions on their federal income tax returns and receive a state tax refund must include the refund in income
only if they deducted the state tax paid.
Click here for "Do I need to report the state or local refund I got last year? Is it taxable?"
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