Question

2020 Notice of change to your individual income tax

Forum|Forum|4 years ago
February 27, 2022
1 reply
0 views

We have received a refund from both State and Federal taxes because of a change in the unemployment taxes for 2020, in 2021. Do I need to recognize this refund on our 2021 taxes?

E

ErnieS0

It depends. Enter your total state refund in TurboTax in Wages & Income > Other Common Income > Refunds Received from State/Local Tax Returns.

Your state 1099-G should have the entire refund amount.

If you live in a state that provides a deduction for federal tax paid then you would have to recognize the refund on your 2021 tax return.

2020 TurboTax was updated for the exemption of the first $10,200 on unemployment benefits for taxpayers with income under $150,000 so the correct amounts should carry over to 2021 if you are using the same user name. However you should confirm the amounts.

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"