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April 16, 2025
Question

1099-G state refund for 4 previous years filed using standard deduction

  • April 16, 2025
  • 2 replies
  • 0 views

In 2024 I received 4 1099-G for tax year 2023, 2022, 2021, 2020.  In all tax years (2020 to 2023) and this year 2024, I used standard deduction. 

 

I pulled the 2024 IRS wage and income report, and I can see that all the 1099-G are in the IRS wage and income report.  After entering the 1099-G, turbotax put all the refund as 2024 income and I am liable for higher tax. 

 

Is this correctly use turbotax to report state refund for standard deduction for the corresponding tax year refund?

    2 replies

    Employee
    April 16, 2025

    If you used standard deduction for all of those tax years, your state refunds for those years are not taxable on your 2024 tax return, and you should not even enter them.  They are only taxable for years in which you itemized deductions.  You say that you always used standard deduction.

    **Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
    April 16, 2025

    if you took the standard deduction in the years for which you received the refunds, they are not taxable.  do not use 1099-G. in fact, Turbotax has a warning on the 1099-G that it's not to be used for state income tax refunds.

    if they're not taxable just don't enter them.