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State tax refund for tax year other than prior year in Lacerte

SOLVEDby Intuit13Updated May 15, 2023

Taxpayer has received state tax refunds for tax years other than the prior tax year.

If the refund is taxable in the current year:

  1. Go to Screen 14.2, State Refunds & Unemployment Comp., etc.
  2. Navigate to the State and Local Refunds subsection under the Federal section.
  3. Enter amount on Income tax refunds, credits or offsets (2).
  4. Enter the tax year on Tax year for box 2 if not 20XX (3).
  5. If the Taxable State and Tax Refunds from the prior year are incorrect:
    1. Click on the State Refund Wksht.
    2. Enter the amount in Income tax refunds, if Itemized last year [O].

If this Form 1099-G was issued for a State or local income tax refund, and there is a tax year other than than the current Tax year in box 3, enter the year from box 3 in YYYY format. The refund entered on this 1099-G will be included in the State Tax refund Worksheet in the computation of the amount of refund that is taxable this year. The taxable amount of refunds may need to be overridden in this situation. Refer to IRS Pub. 525 for more information regarding refunds received from a year other than the current tax year.

If the refund is not taxable in the current year because it was included on a prior year return:

1. Go to Screen 14.1, SS Benefits, Alimony, Miscellaneous Inc.
2. Scroll down to the Alimony and Other Income section, then locate the Other Income (Ctrl+E) field near the bottom of the section.
4. Enter a description of 20XX State Tax Refund and the amount on box 2 of the 1099-G.
5. On the next line, enter a description of Accounted for on 20XX return and a negative of the amount on box 2 of the 1099-G.

The amount will flow to a statement on Schedule 1, line 8z of the tax return.

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