2019 TurboTax could be a bit clearer, in my opinion, in how it describes some of the information needed in the income section for State and Local Tax Refunds on Form 1099-G. I have a couple of questions in that area that I hope someone can help me with: In the page titled “Tell us about your refund”, TurboTax ask for the “Total of all your payments and withholding”. I should input the amount of state and local income taxes paid and withheld in 2018 – correct? Sales tax and real estate tax should be excluded – correct? In the page titled “Let’s look at Line 5 of Your 2018 Tax Return”, TurboTax asks us to “Enter the amount of 2018 state and local taxes paid”. Is this the amount from Schedule A Line 5a, 5d, or 5e?Thanks.

Question

State Tax Refund -- input questions

Forum|Forum|6 years ago
February 6, 2020
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2019 TurboTax could be a bit clearer, in my opinion, in how it describes some of the information needed in the income section for State and Local Tax Refunds on Form 1099-G. I have a couple of questions in that area that I hope someone can help me with:

In the page titled “Tell us about your refund”, TurboTax ask for the “Total of all your payments and withholding”. I should input the amount of state and local income taxes paid and withheld in 2018 – correct? Sales tax and real estate tax should be excluded – correct?

In the page titled “Let’s look at Line 5 of Your 2018 Tax Return”, TurboTax asks us to “Enter the amount of 2018 state and local taxes paid”. Is this the amount from Schedule A Line 5a, 5d, or 5e?

Thanks.

KrisD15

5a.

The state refund is only claimed if you claimed Itemized Deductions on the previous year's return.

Even then, all or only part of the refund might need to be claimed. (it has to do with how much impact the tax claimed affected your Schedule A total)

TurboTax does the calculations but needs several pieces of information.

It is a bit confusing.

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Y

Yepper22Author

Thanks, KrisD15, for the answer to the second question (Line 5a on Schedule A).

Do you know the answer to my first question? Is TurboTax looking for only state and local income taxes paid and withheld in 2018?

Thanks again...

KrisD15

Yes, whether the refund is taxable will be based in part on the state INCOME tax you deducted.

But you don't need to know if it was sales tax or income tax when you enter it, just enter the number from the 2018 Schedule A line 5a. The program then asks if the box on line 5a is checked. (if it is, you used sales tax and the refund is not taxable)

Hope this clears things up.

Thank you for using TurboTax.

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