Why does the W2G show ERROR messages when the client does not itemize deductions? Red error or omission indicators should not review as an error.

[hfrashier]

While filling in return for client from prior year with a state refund. W2G indicates omission errors even though the W2G is not necessary.
Client did not itemize the prior year and thus the state refund is non-taxable.
Red omission indicators should not appear.

[Accountant-Man · Accepted solution]

W2G is for gambling winnings. It has nothing to do with state refunds.

[hfrashier]

The W2G is also for reported refunds and also for unemployment reporting.  The issue I asked about was being created by a carry forward worksheet being generated  to show there was a prior year state tax refund. The program was assuming the refund was taxable even though the client did not itemize the prior year.

[IRonMaN]

You are confusing your Ws with your Gs.  1099Gs is what you should be referring to.  As far as the refund thing goes, you got burnt for transferring your client files too early.  You need to either retransfer your clients that you haven't worked on yet or go into each client file and check the correct box on the refund worksheet.

[Accountant-Man]

Second person to remind you that 1099 G is for state refunds and state unemployment income. W2G is for gambling.