TT is taxing 2022 Colorado TABOR refund for 2023

Forum|Forum|2 years ago
February 16, 2024
1 reply
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My 2022 Colorado refund included $570 of "Sales Tax" (aka TABOR) refund. My understanding this amount should not be taxed for Federal or State tax in 2023.

However TT is including the full refund amount on the "St Refund Wks" and since I itemized in '22 and will in '23, it is going to be taxed for federal and since CO starts with Federal Taxable income it will be taxed on my state return.

I think my only option is to override the carried forward refund amount so I can exclude the $570.

Am I missing something?

Best answer by BillM223

I don't think you are missing anything.

I suspect the issue is that TurboTax can't tell on the Carryover Worksheet (that's what you're looking at, right?) that this state tax refund is not simply a regular refund that would be on 1099-G but includes a TABOR refund.

And this announcement that the TABOR refunds would not be taxable is a relatively recent development.

So I would say that changing the carryover amount may be necessary. I hope it does not impair your ability to e-file (some overrides do).

Let us know if something else comes up.

BillM223Answer

I don't think you are missing anything.

And this announcement that the TABOR refunds would not be taxable is a relatively recent development.

So I would say that changing the carryover amount may be necessary. I hope it does not impair your ability to e-file (some overrides do).

Let us know if something else comes up.

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RW14Author

I'm not familiar with the "Carryover Worksheet". I see it on the "State and Local Income Tax Refund Worksheet". In the Step by Step section the 1099G is hard coded - eg. it carries over from the previous year.

I don't understand why the programmers at TT can't recognize this and fix the program to allow me to enter the correct amount - instead of forcing to the amount received which includes the TABOR refund. The really crazy part is having it taxed Federally and State.

BillM223

Please have some mercy on the programmers. In the last few years, the IRS and state government have been "moving the goalposts" on a weekly basis, making constant updates necessary - and more necessary - constant testing to make sure that one change does not break a dozen other things.

Most carryovers are on the Carryover Worksheet, but there could be others (like your "State and Local Income Tax Refund Worksheet").

I don't know how common this is, but if you would like us to look at this situation, please give us a token.

A token is a 7 digit number that points to a "sanitized" version of your return, i.e., all personally identifiable information is masked out.

To send us a token, please do the following:

Online

Log into your TurboTax Online tax return
On the left, click on Tax Tools
Under Tax Tools, click on Tools
In Tools Center, click on Share my File with Agent
TurboTax will give you a “token”, a 7-digit number
Post the token number in this thread
Be sure to add to that post “@” “billm223” (without the space in between) so that I will be notified

Desktop

Open your return in the desktop product
Look along the top and click on Online
Click on Send Tax File to Agent
TurboTax will give you a “token”, a 7-digit number
Post the token number in this thread
Be sure to add to that post “@” “billm223” (without the space in between) so that I will be notified

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