Individuals – State Tax Refund – Received in Current Year for Last Year’s State Return
If you itemized deductions on your prior year tax return, then a state refund that you received this year may be taxable.If you claimed the standard deduction on the prior-year return, the state tax refund is generally not includible in federal taxable income because no federal tax benefit was derived from the payment of state income taxes.
To report Form 1099-G State Refund Document in the TaxAct program, follow the steps below.
TaxAct Online
Dashboard
- From within your TaxAct return, click Income.
- On smaller devices, click the menu at the top left corner of your screen, then make your selection.
- Click the Explore More drop-down.
- Click Add beside State/Local Tax Refunds.
- Complete the rest of the interview process.
Classic
- From within your TaxAct return, click Federal.
- On smaller devices, click the menu at the top left corner of your screen, then make your selection.
- Click State Income Tax Refund.
- Complete the rest of the interview process.