Skip to main content
June 4, 2019
Question

MD 2017 refund Tax rec'd in 2018. Must MD Refund be Reported as 2018 Income on Both 2018 Fed Tax and on 2018 MD Tax ?

  • June 4, 2019
  • 1 reply
  • 0 views
No text available

    1 reply

    VolvoGirl
    Employee
    June 4, 2019
    Just federal.  A State Tax Refund is taxable if you itemized deductions on that prior year's federal return and took a deduction for state income taxes instead of the sale tax.  You got a deduction benefit for it so now you have to include it as income. If you took the standard deduction or filed a 1040EZ or 1040A it is not taxable and you don't need to report it.

    To enter a state refund just type  1099-G (with the dash)  in the search box at the top of your return and click on Jump To it.
     
    OR  Enter the 1099G under
     Federal on left
    Wages & Income at top
     Scroll down to 1099-Misc and  Other Common Income
          You might need click on Show More to expand the section

    Then it's the first line for Refunds Received for State/Local Tax Returns - Click Start
         You do not want the next line that says Other 1099G Income
     
    On the first screen check YES - Received a State Refund.