Question

Form 1040 - state tax refund taxable?

Forum|Forum|4 years ago
April 2, 2022
2 replies
0 views

Hello,

TurboTax give me a quick summary and it is asking me to validate this info. However, It does not show me where to check. Can you help me and point to where I can find these line items please: See screenshot:

B

bosso3

Employee

This is asking you whether the listed data from you 2020 tax return is correct.

You would verify this by comparing the data listed to the corresponding data on your 2020 tax return.

Refer to the following link to determine if your state tax refund taxable

https://www.irs.gov/faqs/interest-divid[product key removed]-of-income/1099-information-returns-all-other/1099-information-returns-all-other

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VolvoGirl

Employee

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 it is not taxable and you don't need to report it.

You need to check your 2020 1040 line 12 to see which deduction you took. How much is on line 12?