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i received a 1099g form (georgia) for 2010 for state income tax refund. do i claim this as income on my 2011 taxes? i did itemize in 2010.

    I do not disagree with the earlier posts but they do not actually answer your question, rhoot.

    When you transfer the prior year data in to this year, one of the elements is what TurboTax believes from your last year filing to be the amount of the prior year state tax refund.

    You report the Form 1099-G data.
    In the interview it will ask you to validate that the amount is what was reported in your prior year return.

    Later, after the rest of your entries, TurboTax interview will walk you through the process of determining if your prior year state tax refund is or is not taxable this year based on the simple question of, if you Itemized Deductions last year, did the prior year taxes paid that were overpaid and in the refund reduce last year's Federal Income Tax.  If you used the Standard Deviation, the refund cannot be taxable.  If the prior year refund did go toward reducing your prior year Federal tax, then TurboTax will calculate how much of your state tax refund is in fact taxable this year.

    Here is the IRS Pub17 on the matter - called "Recoveries"  - note that the key is "if you deducted the tax in an earlier year"  - which would not apply  to those who took the Standard Deduciton

    State tax refund.   If you received a state or local income tax refund (or credit or offset) in 2011, you generally must include it in income if you deducted the tax in an earlier year. The payer should send Form 1099-G, Certain Government Payments, to you by January 31, 2012. The IRS also will receive a copy of the Form 1099-G. If you file Form 1040, use the State and Local Income Tax Refund worksheet in the 2011 Form 1040 instructions for line 10 to figure the amount (if any) to include in your income. See Publication 525 for when you must use another worksheet.

      If you could choose to deduct for a tax year either:
        State and local income taxes, or
        State and local general sales taxes, then
      Yes.  TT will ask you appropriate questions about it.  It will be taxable this year if you took it as a deduction last year (in lieu of Sales Tax).
        If you transferred your 2010 return into the 2011 return it will be included as income.  If not, yes you would claim it as income.