Question

Reflecting an adjusted 2019 Illinois tax refund in my 2020 tax return

Forum|Forum|5 years ago
February 24, 2021
1 reply
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I used TurboTax to prepare my 2019 IL tax return, and accordingly I claimed for $545 tax return. However, IL tax department sent me a letter after a couple months, in which they provided explanation for some corrections, and they ended up paying me $99. Unfortunately, I didn't realize the issue at the time (actually, I thought they are giving me an additional $99 on top of the original $545, but after a while realized that they are only paying me the $99). Furthermore, looks like I have lost the letter from IL department of revenue...

I have two questions now:

(1) Is there still a chance to revisit the discrepancy for 2019 tax return and possibly ask for a full refund or is it too late to act on this? For example, is there a way to request for the 2019 correction document online or via mail to check the issue again and request for a fix?

(2) Aside from fixing (or not) the 2019 tax issue, how should I reflect this adjustment, namely the actual 2019 IL tax refund payment, in my 2020 tax return in the TurboTax, both for federal return and state return?

FYI, I am not filing any IL tax return for 2020, since I didn't live in IL and didn't have income from IL during 2020. I'm only filing for CA tax return for 2020.

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JohnW152

You may be able to still contest the adjustment -- there'll be a specific response date on the letter that you'll need to comply with.

If you're still within that period, you can respond online, but at this point you'd need a new "Letter ID" to activate an online account. Please see Letters and Notices for more information on this.

As far as your 2020 return, you won't need to make any adjustment unless you took an itemized deduction for state and local income taxes on your 2019 return. In that case, your refund would be taxable on your 2020 return, and you'd need to make sure that your actual refund amount (i.e., the $99) is reflected. You should receive a Form 1099-G reporting your income tax refund.

E

ebrahimm777Author

Thanks, @JohnW152 , for the detailed response. Very helpful.

As for the 2020 tax return, I used standards deductions for my 2019 tax return, so based on your response, I don't need to indicate the actual 2019 refund for my 2020 tax Return. However, TurboTax is still asking me about my 2019 state tax returns, for which there are default entries based on my own / TurboTax claimed values for my 2019 state returns, but I have the option to make changes. I assume I should put in the actual refund amounts here; is that right?

As for fixing the 2019 IL refund discrepancy, I called the IL department of revenue this morning, and they said they would send me the letter again, for which I can still take an action. They explained the issue was that my claimed IL income didn't match (i.e., was less than) the number on my IL company W2. Actually, the difference is about some bonuses from my previous company in IL that I received later in 2019 after I moved to CA to work for a new company. I raised the question in the TurboTax forum (please check the following link for details), and I was told I have to file that part of my income as CA income, not as IL income. Now, it looks like the IL Department of Revenue does not agree with that interpretation and would like to see it as part of my IL income. So, I'm a bit confused now what to do (plus, it has cost me some $450 refund not being paid to me). Any thoughts or suggestions on this? Greatly appreciate your kind help.

https://ttlc.intuit.com/community/state-taxes/discussion/received-income-from-illinois-com[product key removed]ng-it-and-moving-to-california-does-it-count-as-ca/01/1606850/highlight/true#M69778

LenaH

Since Illinois included the bonus income on their state return, you have to amend your 2019 California return to exclude it from California income. You should then get a refund of California taxes paid.

For 2019 amendments, scroll down to Your tax return & documents, select 2019 and then Amend (change) return. From there, you can make your changes. When finished, TurboTax will give you instructions for printing and mailing your amended return as amendments can't be e-filed.

@ebrahimm777

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