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March 18, 2025
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I got a small tax refund from my state-overpayment from last year. Any idea how to add it?

  • March 18, 2025
  • 2 replies
  • 0 views
There doesn’t seem to be option on 1099
    Best answer by MonikaK1

    A state tax refund from filing the prior year's taxes would only be taxable to the extent there was a tax benefit - i.e., you took an itemized deduction for taxes paid. 

     

    If you were going to report a state tax refund received in 2024 as income and reported on Form 1099-G, TurboTax would ask how much you deducted for state and local taxes in 2023 (line 5 from Schedule A).

     

    To find the state tax refund section, go to Wages and Income, select Other Income, and then Refunds Received for State/Local Tax Returns. 

     

    When you see the question (see screenshot below) "Did you receive any of these payments reported on Form 1099-G", answer No if you received a state tax refund only. There are other types of government payments reported on that form, such as farm subsidies. Answering Yes could result in TurboTax asking if the payment is related to a Schedule C or a Schedule F.

     

     

    See this help article for more information on entering the form.

     

    See this article for more information about Form 1099-G.

     

    @mmdannunzio 

    2 replies

    Employee
    March 18, 2025

    Did you itemize last year?

    March 18, 2025

    Yes

    MonikaK1Answer
    March 18, 2025

    A state tax refund from filing the prior year's taxes would only be taxable to the extent there was a tax benefit - i.e., you took an itemized deduction for taxes paid. 

     

    If you were going to report a state tax refund received in 2024 as income and reported on Form 1099-G, TurboTax would ask how much you deducted for state and local taxes in 2023 (line 5 from Schedule A).

     

    To find the state tax refund section, go to Wages and Income, select Other Income, and then Refunds Received for State/Local Tax Returns. 

     

    When you see the question (see screenshot below) "Did you receive any of these payments reported on Form 1099-G", answer No if you received a state tax refund only. There are other types of government payments reported on that form, such as farm subsidies. Answering Yes could result in TurboTax asking if the payment is related to a Schedule C or a Schedule F.

     

     

    See this help article for more information on entering the form.

     

    See this article for more information about Form 1099-G.

     

    @mmdannunzio 

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    March 18, 2025

    Thx. I found it   I didn’t use TurboTax last year so had to enter it manually.  I find that as a new TurboTax user, without it having my last year tax return, it overlooks/makes incorrect assumptions