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Question

Bob Apl

Asked

Deductibility of State Income Tax refund

Turbo Tax says my state income tax refund is not taxible because I didn't itemize last year, but I did itemize, but did not use Turbo Tax. How do I fix it?

(Asked 02/21/09, Views 67)

Question has been solved by TurboTaxAnita

Answers (2) Comments (2)

TurboTaxAnita

Pro

Go back to income, state tax refund and change your answer to the question about whether you itemized last year.

(Posted 02/21/09)

Solved

Rating (+ 9):

croland214
Commented

I tried to go back to state refunds, but I'm not getting any questions about itemizing last year????

TurboTaxAnita

Pro

You can also go to forms since you are in the desktop an open the state tax refund worksheet and change the answer there

(Posted 02/21/09)

Rating (0)

JenCTax
Commented

I had the same problem and if I change the worksheet under forms, the interview process always changes the worksheet answer back to "No" I didn't itemize in 07 when in fact I did. Any other ideas?

JenCTax
Commented

I realized that if I "tab" through the state refund worksheet, the 1040 keeps my answer that I itemized in 2007 and properly adds the amount as taxable income although the interview still reflects that I did not itemize.