How to allocate taxable state refund between two taxpayers in year after divorce

[dstebenne]

married taxpayers received a 2017 state tax refund in 2018. They are now divorced, and I am preparing two separate returns. Because I copied the transferred return and turned them into single taxpayer returns the program carried over the taxable refund to both taxpayers - incorrect. Do I really have to delete and start over with the one who should not be taxed on the refund? The program will not let me remove 1099G, which is ridiculous. Suggestions, anyone?

[TAXOH · Accepted solution]

Go to the carryover worksheet and go to the 2017 State Tax Refund information section and change the overpayment to 0 for the one that shouldn't be getting taxed on the refund.

[dstebenne]

Thank you! I didn't follow the trail back far enough, obviously...much appreciated

[TAXOH]

You're welcome.   It took me a while to find it the first time.