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April 6, 2022
Question

Received State tax return in year 2021 for the tax year of 2019

  • April 6, 2022
  • 1 reply
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I have received a state tax return in year 2021 for the tax year of 2019. How should I judge whether it is an taxable income for year 2021?

    1 reply

    fmnikaAuthor
    April 6, 2022

    Sorry, one correction:

    Received state tax refund in year 2021 for tax year of 2019.

     

    April 6, 2022

    Report the 2019 state tax refund, and we’ll figure out if it’s taxable or not. On the Tell us about your refund screen, as you enter your 1099-G form, you'll be able to enter the Tax Year of Refund (2019).

    • You'll need to have your 2019 income tax return to enter some information so TurboTax can determine what if any of your state refund is taxable.

    If all three of the following are true, your refund counts as taxable income:

    • You itemized deductions last year, instead of taking the standard deduction
    • You claimed state and local income taxes (not general sales taxes)
    • Claiming the deduction helped you increase your federal refund or lower your tax bill

    Even when your refund is taxable, it may not be the entire amount. It depends on how much the deduction affected your refund or tax bill. Just answer a few simple questions about last year’s refund, and we’ll calculate the taxable amount for you.

     

     

     

     

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    fmnikaAuthor
    April 6, 2022

    Thanks.

    In my case, my 2019 and 2020 tax is not processed by IRS yet till now (Tax returns for 2019 and 2020 have been mailed/filed). 

    So what information should I follow?