The State Refund amount that is reported to you in Box 2 of the 1099-G form should be entered into your account.
- If you used the standard deduction on your previous year's tax return, the amount is not taxable and will not be pulled to the federal income tax return.
- If itemized deductions were claimed on the previous tax year's return, all or a portion of the state refund may be taxable on your current year tax return.
The program will automatically calculate the taxable amount based on your entries into this section. If you filed your prior year return using the same username, we will automatically pull the information forward for you.
If you did not receive the amount indicated because the refund was applied to an offset to pay a past-due obligation, the refund is still required to be entered.
Within the 1040 Instructions is the worksheet used to figure if the refund is taxable on line 1 of Schedule 1 of the 1040 form.
Where to enter Form 1099-G (Box 2)?
To enter the state refund into the program, go to:
- Federal Section
- Income - Select My Forms
- 1099-G Box 2 - State or local refunds, credits, offsets