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April 15, 2023
Question

How do I fix the issue of my state refund being greater than the total amount reported on my federal return?

  • April 15, 2023
  • 1 reply
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I moved from Virginia to Texas, a state without income tax, and received a 760PY form

1 reply

April 15, 2023

If you did not itemize your return for the prior year, then the state tax refund does not need to be declared as income. 

If you were a Part Year Resident of Virginia in 2022, then the 760PY is the correct form.

First, please check My Info in the Federal return and be sure your address is listed as your Texas address, TX is selected in the dropdown box for resident state, and the box is checked for Made money in another state.

 

  1. Then go to the States section and click on the delete trashcan icon for Virginia
  2. Next, add Virginia back and be sure it is creating a Part Year Resident return
  3. It will show your federal income and ask you to allocate what is sourced in Virginia
  4. You will not need to file a return in Texas, since it is one of the states with no individual income tax

    If this does not completely solve your question, please let us know more details, so we may better assist you.