I received a 1099-G for state income tax refund, and my tax return was itemized, so I am supposed to report this 1099-G in my 2020 tax return. But when I file tax return online and try to enter this 1099-G information, the available Payment Types that I can choose are: Taxable grants, Agricultural payments, Market gain on CCC loans, Reemployment Trade Adjustment Assistance (RTAA) payments, Business or farm tax refund. There is no option of State/local income tax refund in the 1099-G section. Is this a bug or on purpose?
Even though state tax refunds are reported on Form 1099-G, they are entered in a different location of your return than other Form 1099-Gs. After you enter the information, there will be some follow-up questions to determine whether the amount is taxable based on whether you used the standard deduction or itemized deductions in 2019.
Use these steps:
- On the top row of the TurboTax online screen, click on Search (or for CD/downloaded TurboTax locate the search box in the upper right corner)
- This opens a box where you can type in “state and local tax refund” and click the magnifying glass (or for CD/downloaded TurboTax, click Find)
- The search results will give you an option to “Jump to state and local tax refund”
- Click on the blue “Jump to state and local tax refund” link and enter your information
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