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.
01-28-2018 12:22 AM
Just wanted to add my two cents as well. This is also happening to me, and I've even tried to uncheck the box on the "last year's data" reports. I'm looking at my 2016 return, and clearly see that I did itemize. My 2016 state income tax refund is definitely taxable, but I can't get the 2017 program to include this amount to tax. This needs a fix before filing time!
01-28-2018 01:49 AM
OK all, I think I've found the solution! The program doesn't like when you import information, especially from pdf. I went in and created a new return, re-keying all of my info in from scratch. I found that when I got to the 1099G part, it asked me a lot of additional questions I didn't get before: What was my 2016 itemized deduction? What was my 2016 state tax? When I answered these questions, it DID allow the state tax refund to show up on the 1040 as taxable. I went through and finished my return, and got a slightly revised total amount due.
THEN, I went back to my old return, and revised these fields on the "Last Year's Data Worksheet", found in the upper left corner under Forms/Open Forms/Last Year's Data Worksheet. I changed these fields:
Then I went back to the 1099G interview page, viewed the form, and checked the box YES for using the itemized deduction. And BOOM it allowed my state refund to be taxable and all was well! The total tax then matched my second hand-keyed return, so I knew it was correct.
It is literally 1:45 AM here, so if I stayed up so that someone else didn't have to, it's worth it! Hope this helps someone!!
01-30-2018 11:56 PM - edited 01-30-2018 11:56 PM
I called and managed to get a Tier 2 rep to acknowledge it was a problem, and they were going to escalate the issue. A Tier 3 rep was supposed to call me back within 48 hours, but I haven't heard anything back yet.
Hopefully they will make a general fix because this has to impact a lot of people, but this was a great workaround, and saved me time.
Also, to be clear, Line 75 (state tax) on the Last Year's Data Worksheet corresponds to Schedule A, Line 5 (if I did it correctly).
02-02-2018 01:00 PM - edited 02-02-2018 01:03 PM
It's definitely a bug in the software, and while I appreciate the efforts of others to create a workaround, Block needs to fix this. We paid for a functional program, not to be beta testers for a shoddy product.
FWIW, I did not import from a PDF; I imported from last year's .T16 file.
02-05-2018 11:18 AM
We apologize for the delay and inconvenience. I'm told by a member of the digital products team that this issue is currently being fixed and is anticipated to be resolved by tomorrow 2.6.
02-06-2018 09:14 PM
Glad to hear a fix is in the works.
However, I downloaded the 2/6/18 update, and it hasn't addressed this issue.
To test, I created a new return, imported last year's .T16 file, entered my W-2, and then went to the 1099-G section and entered my refund from my state return. It still has the same message that I used standard deduction last year.
Hopefully it will be fixed in the next release. According to the software updater, the next update is scheduled for release on 2/23.
02-23-2018 06:27 PM
It is 2/23/18 and I have applied today's update and this bug still exists, at least for me. I found this thread after spending 45 minutes with phone support earlier today. I finally got a supervisor, and when we started a brand new return and did not import ANY prior year information, the program worked as it should. However, we could not get my prior year state refund to carry forward correctly to line 10 on the 2017 Federal form 1040 that I have completed (except for the correct handling of the state refund). I tried deleting the 1099 G info and then adding it back, but it didn't work. Her solution was that I probably need to redo my return, which is fairly complex. That is the reason I have been purchasing H&R Block software (and previously TaxCut) for the past 20 years - to make things easier (and carry last year's information forward), not harder.
My situation is a little different in that I amended my 2014 State Tax return (filed and paid in April 2015, and itemized on 2015 Federal return) and got a refund in 2017. The software lets me input the 1099 G information and I chose tax year 2014. The software says it is a special case and refers me to the IRS instructions, where I need to calculate the taxable amount of the refund, which I did and entered it into the software. It shows up in the data entry screen, but does not save in the background worksheet for 1040 line 10, nor does it populate line 10. I can override line 10 with the correct amount, but then I cannot e-file, which is also part of the reason I paid for the product. At this point, I am VERY disappointed in this product.