Question

2020 TT is taxing my 2018 state refund even though I took the standard deduction in 2018

Forum|Forum|5 years ago
April 19, 2021
1 reply
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I received a local income tax refund in 2020 for 2018 city taxes. (yes, I filed them late.) I took the standard deduction in 2018. TurboTax is taxing the refund, but I don't believe it should be taxed as the income was already taxed in 2018 and no deduction for local taxes was taken.

When I entered my Ohio state refund for 2019, TT asked whether I itemized or not in 2019, but when I selected "Other Ohio Tax," no such question came up.

Thoughts?

Other

E

ErnieS0

Are both your state refunds in the State and Local Tax Refund Summary? If they are, you should see the question asking whether you itemized or not.

Select Federal on the left column in TurboTax Online
Click Wages & Income at the top
Find Refunds Received for State/Local Tax Returns. Edit
If your 2018 and 2019 refunds are on the screen, hit Done and select "I took the standard deduction in 2019"
Otherwise, add your other refund and do the step above

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A

aj9508Author

It only asks that question about the 2019 refund. When I say I took the standard deduction, it says "Good News - not taxable" but it doesn't ask about the other years and it taxes all of the other years. I think I might lie and say they are all 2019... I hope that doesn't get me in trouble, but that's all I know to do to get the tax right.