1099- G Amount not Showing up on Sch 1

[mmmconsultingservices]

Hello There - I have two forms: 2024 1099-G for tax year 2022 $190 (2022 I took the standard deduction) I have another form 2024 1099-G for $5,846 for tax year 2023 (I itemized in 2023); How come when I enter both forms only $190 shows up and the $5,846 doesn't show up at all? 

[PhoebeRoberts]

Hi there,

You’ve come to an Intuit site supporting tax professionals, and you may be looking for support as an individual taxpayer. Please visit the TurboTax Help site for support.

Cheers!

Assuming you're actually preparing someone else's return, the input for determining the taxable portion of state refunds is complicated. I find it easier to recreate the prior year return and let the software proforma the information needed for the calculation. How much tax benefit did your client get from the refunded taxes on their 2023 return?

For the 2022 piece that you know isn't taxable, just don't enter it.

[mmmconsultingservices]

Ok that makes sense on the prior return. The weird thing is that the 2023 return information did pull into the worksheet but it is not flowing through to the return. Instead, the $190 from the 2022 was flowing through even. When I deleted the $190 1099-G $0 showed up in the return and I know that it is not right. The box is even checked that I itemized in 2023 but still it is not flowing through. 

[PhoebeRoberts]

How much tax benefit did your client get in 2023 from the refunded taxes?

If the sales tax deduction was larger than the income tax withheld, the tax benefit amount would be zero. If the client was over $10k in total Sch A taxes, the tax benefit amount could well have been zero.

It used to be that if you itemized, 99% of the time all of your state refund was taxable. Now it's hardly ever taxable.

[mmmconsultingservices]

In 2023, the state income tax amount was $12,764 on the Schedule A. So are you saying because that amount was higher than $10k that it is not taxable via a refund? 

[PhoebeRoberts · Accepted solution]

I'm saying you should refer to pages 84 and 85 of the Form 1040 instructions.

[mmmconsultingservices]

Thank you!