Whether you’re an experienced do-it-yourselfer or doing your own taxes for the first time, this is your place to learn and share. Here you’ll find information and resources for using H&R Block’s online and software DIY solutions. You’ll also find links to more information to assist you on your DIY journey.
01-05-2018 08:25 PM
Tax program help; I entered my 2017 1099-G state income tax refund. I checked yes for I itemized in 2106.I checked no i did not deduct general sales tax. I have no exceptions. When I go to the next screen it states my state income tax refund is not taxed because I used the standard deductions in 2016, which I did not. Why is it not seeing the check box yes that I did itemize in 2016?
01-05-2018 08:37 PM
Welcome to the H&R Block community.
I'm willing to bet that the software applied the standard deduction to your return automatically. If you did not have enough allowable itemized deductions so that the total of your itemized deductions was greater than the standard deduction amount for your filing status (the state tax refund did not provide a tax benefit) then the software would have instantly gone with the standard deduction. Standard deduction amounts for 2016 were $6,300 for single taxpayers, 9,300 for heads of household, and $12,600 for married couples filing jointly.
The other possibility of course is that there is either a glitch in the software or that it miscalculated a deduction causing the standard deduction to be elected, however I suggest reviewing your tax return first to see if the software did in fact use the standard deduction and if it did in fact calculate everything correctly. If your itemized deductions total is the greater amount though and you do have that amount on your 1040 page 2 for your deductions, or if on the other hand you find something on Schedule A that looks like it is calculated incorrectly, then you'll want to either call support at 1-800-HRBLOCK for further assistance or review your tax return with a tax professional at an office (it's free to look it over).
If you have any other questions I'll be glad to help.
Senior Tax Advisor (Tampa, FL)
01-06-2018 09:51 AM
I'm thinking this is a program error, as I am a new user, and HRB has no history on my tax returns. I am not even asked about Schedule A at all in the interview. It assumes 'standard deduction,' even when I open the form and manually check "itemized deductions in 2016."
01-07-2018 10:13 AM - edited 01-07-2018 10:15 AM
Glad to hear that you've got things working properly.
If you're in any doubt about your tax return you can always review a printed copy with a tax professional at an office for free (second look) later on once you've finished it.
Another option is "best of both". This is where you send the return to a tax professional in your area for review before you file it. This is done through the tax software if you're using the online software. There is a fee, but it's much lower than it would be to prepare the return at an office.
01-23-2018 12:12 AM
I am a new user and it did the exact same thing to me; assumed I took the standard deduction in 2016 which I did not and I can't seem to change it...
As much as I'd like to save a few hundred dollars this can get someone into trouble.
01-23-2018 06:14 AM
If this is the case, then I suspect that the app is relying exclusively on the "last year's data" worksheet. Clearly, if one is a new user, there isn’t any data brought forward from last year’s return unless you enter manually. So, it’s a bug.
01-23-2018 07:33 AM
For some reason, when I import my 2016 refund pdf it won't recognize that I itemized. It doesn't matter what I do to the form, it will not change. I started a new return without importing last years return and it worked fine. It is definitely a program bug. It isn't an IRS issue like one of the phone help persons told me. Give me a break.
01-25-2018 09:27 AM - edited 01-25-2018 09:27 AM
I itemized in 2016, and imported last year's *.T16 file when I created the 2017 return. It thinks I claimed Standard Deduction. I tried to fix it by going into the "Whole Form" view for the 1099-G, and changing the checkbox for "Did you itemize your deductions in 2016?" from No to Yes, but the change doesn't stick.
No matter what I do, when I hide the Whole Form view, and click Next, it says:
"State or Local Refund is Tax-Free - Since you claimed the standard deduction in 2016, your refund won't be taxed."
Help? This is a significant error.
01-25-2018 09:35 AM
Here are the answers I received from H&R block's phone helpless:
First call- The 1099-G is not final and will be fixed on 1-18-2018 update- WRONG
Second call- It must be an IRS issue, because there is no way their program is wrong. WRONG
It is definitely a bug when you import last years return. It's a BIG deal, because you may owe more taxes and you will be penalized by the IRS.