john2
Level 1
‎12-06-2019 11:22 PM

The sales tax deduction seems to be the default when trying to calculate the prior year state tax deduction to be included on 1040 for 2018.  

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Just-Lisa-Now-
Level 15
Level 15
‎12-06-2019 11:22 PM

There was a problem with the state refund worksheet for client files that were transferred into 2018 early in the season. They all transferred over as general sales tax, not state income taxes when it needed to be. 

You need to either open the state tax refund worksheet and unmark the General Sales Tax box and mark the Income Taxes box if thats what the client used in 2017, or for clients that you have not worked on yet, simply delete the file and re-transfer in from 2017.


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

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IntuitCharlene
Moderator
Moderator
‎12-06-2019 11:22 PM

Development is looking into this issue. 

If the Income Taxes box is not checked on Line C of the State and Local Income Tax Refund Worksheet and it should have been then you would want to check that. 

If you are sure the full prior year refund should be taxable this year you can skip making the manual adjustment and just check the box below line 4 for "Use this worksheet to complete taxable refund amount? - If no, skip this Smart Worksheet. Total refund from Line 1 column (b) will be reported as income." 


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john2
Level 1
‎12-06-2019 11:22 PM
Line C & 4 are checked, but the program is is choosing Sales Tax by default even when state/local taxes were used in previous year
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