Why didn't Turbo auto transfer my winnings from Fed tax to State? Does Yes mean I already added it to State (and if so, then why is it asking me, why doesn't it recognize it if I added it?). The question is confusing and I don't want to mistakenly report it twice! I tried to review my income, but for state it doesn't show it (my w-2, my spouse w-2, lottery listing) so I can't verify if it was transferred or not.
TurboTax automatically populates your state return for you as you prepare your Federal return, however, sometimes in order to file your State return there are clarifying questions that it will have to ask to make sure that your taxes are filed correctly. You could have Lottery winnings from any state, so answer TurboTax questions correctly, Make sure to review your returns before filing to make sure your winnings are reported correctly.
Thank you, however, I'm still confused on what clicking "Yes" or 'No" means? Did I include any winnings from California Lottery in the $1000..... Include where? Not sure what it is asking and so not sure how to respond. It's a very oddly stated question that really makes no grammatical sense:
"Did you include any winnings from the California lottery in the $1,000 you've reported on your federal return this year?"
I did click yes, but then it had me enter it again. So then I thought maybe I should have clicked No. I'm not sure if it's asking me if there is any more winnings to add? And Turbo doesn't let me see a list of all my entered earnings (those by me, those by my spouse and lottery winnings) like you can when viewing your federal. So how can I verify that only one $1000 winning was entered?
If you had gambling winnings reported on the federal tax return, you must indicate if they were from the California lottery. California specifically excludes tax on this income. If you clicked Yes (and the only reason they ask twice is to be sure) it should have been subtracted from your California income amount.