Question

State and local income tax refund

Forum|Forum|5 years ago
June 17, 2020
1 reply
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I received a state tax refund for 2018 state tax and a local tax refund from 2013. The 2018 refund is not taxable because I did not itemize in 2018. Turbotax provides a State and Local Tax Refund Worksheet fo this. In 2013 I itemized and paid Alternative Minimum tax. This should not count as income in 2019 since the local tax refund did not reduce my total federal income tax. How can I create a separate state and local tax refund worksheet. The IRS says to fill out a separate worksheet if you have refunds from multiple years.

VolvoGirl

Employee

Turbo Tax only has 1 worksheet. Don't enter the refund from 2018 at all since its not taxable. Just fill out the 2013 refund.

N

neil115bAuthor

Problem is I still need to note receipt of the 2018 refund and the worksheet is required to support the fact that it is not taxable income. And the IRS instructions indicate you need to fill out separate worksheets.