Received PA tax refunds from two years last year

Forum|Forum|11 months ago
April 9, 2025
1 reply
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I filed federal and state taxes in 2022 and 2023 and received state refunds for each year in 2024. The state was very late in issuing the 2022 refund (which should have arrived at the end of 2023) and it arrived in January of 2024 with interest for the delayed refund. The 2023 state refund arrived later in 2024 with interest for the delayed in refund. Entering the two 1099-int for the two refunds was easy. However, while I did not take the standard deduction in any of the years, neither of the refunds should be taxable as the limit on my SALT salt deduction far exceeded the $10,000 limit for both years. Entering the 2023 state refund results in no extra tax for this year. However, when it asks if I have another refund and I enter the state and the year 2022, it just says it is taxable without asking any questions. How do I enter the 2022 state refund in TurboTax without it erroneously thinking it is taxable? There is no option for entering them together and entering more than one year. It just asks the tax year of the refund.

TurboTax Home & Biz Windows

Best answer by IsabellaG

After I enter two different state refunds, one from 2023 and another from 2022, I see the screen State and Local Tax Refund Summary.

When I click Done, I see Let's See if Your 2023 Pennsylvania Refund is Taxable, and I enter my information.

I continue to the screen Refunds From Years Prior to 2023, and in the box for Taxable Amount, I enter zero. Then neither refund is considered taxable. You can check this in TurboTax Desktop by going to Forms mode and looking at line 8 on your Form 1040. In TurboTax Online, you can do the same thing by Previewing your tax return.