Like the title says, from the filing process and tax questions to tax policy and reform, you can search and share All Things Tax here. This is the place to find answers to all your general questions that don't fall under the other categories. And just a reminder: questions about software or online filing should be posted in DIY Products.
04-09-2016 05:27 PM - edited 04-09-2016 05:32 PM
I just e-filed the 2015 federal taxes for my daughter and included her state tax refund from the prior year as income. However, when I filled out her state taxes and was asked to enter her state tax refunds (if any) entered on the federal tax return (1040, line 10), I discovered that the refund I had entered, although retained in the file, does not show on form 1040 line 10. This appears to be a defect in the softwaare and looks like I will have to file an amended return. Has anyone else encountered this? Out of the approximately 20 years I've used tax filing software, this is the first time I have encountered what appears to be an error.
I am using H&R Block Deluxe 2015 + Efile.
Thank you for any help.
Solved! Go to Solution.
04-09-2016 05:42 PM - edited 04-09-2016 07:04 PM
Welcome to the community.
Did you daughter itemize deductions on Schedule A last year? The state tax refund is only taxable income if it was deducted on Schedule A the year before and it provided a tax benefit.
Hope this helps & please ask if you have any other questions.
04-09-2016 06:57 PM
State refunds wil not be taxable if you did not itemize in 2014 or if you chose to use the state sales tax instead of state withholding.
04-09-2016 08:51 PM
I learned something new this year, always good. She did itemize laste year. However, the standard deduction was higher than her itemization. This is the first yime I"ve encountered this. Kudos to H&R Block for this catch.
04-09-2016 08:53 PM
I learned something new this year, always good. She did itemize laste year. However, the standard deduction was higher than her itemization. This is the first yime I"ve encountered this situation. I also did not know of the state sales tax angle. Kudos to H&R Block for this catch.
Thank you for your help,
01-30-2017 08:20 AM
Federal Taxes 2016. I have entered a state tax refund from form 1099-G in the appropriate spot and it has been retained in the file...but does not appear on form 1040 line 10. I did itemize deductions last year which were more then the standard deductions. I am filing for year 2016. I have read the instructions for line 10 and DO NOT qualify for any of the exceptions.
The amount of the state refund SHOULD appear on line 10. Is there a problem with the 2016 software?
Also, I have looked at the form 1099-G in my filing and this is what is checked:
Did you itemize your deductions in 2015? YES
Did you deduct general sales taxes in 2015? NO
Do you fall into any of the exceptions.... ? YES
Where can I find out what "exception" I qualify for???
01-30-2017 10:39 AM - edited 01-30-2017 10:45 AM
Good Morning Barbara13 and welcome to the community.
You state your itemized deductions were more than your standard deduction. Was the difference between the standard deduction and itemizing less than than the state refund? If so, your taxable state refund would be that difference. (also what you could have used for sales tax and the difference between withholding could also affect the taxable portion) There should be a worksheet you can use in the progream to reach the answer.
I noticed too you said you met an exception. If you had said no to that question, would it then have carried your refund to
line 10 of the 1040? (I'm not familuar with the online software).
Just some thoughts off the top of my head.
01-31-2017 05:33 AM
Thank you for replying. The H & R Block software does not let you check or uncheck boxes on the worksheets. It fills it in from the info you supply. I did, however, get a worksheet from the IRS site and I do not qualify for any exceptions. Don't know what to do at this point...guess I'll have to go to an H & R Block office. And won't be buying this company's software next year.