Taxable State Refund (Form 1099-G)
I would like to report an issue with the navigation/workflow for handling taxable state refunds for a tax year prior to the previous tax year.
I received a state tax refund in 2022 for a tax year prior to 2021 (let's say 2020). Note: I did not receive a state tax refund for the previous tax year (2021). So I go to "Taxable State Refund (1099-G)" and click through the first few screens. On the "Your State or Local Tax Refund" screen that asks "Did you receive any state or local tax refunds in 2022?" I click "Yes" and it takes me to the "State or Local Tax Refund" page where it asks for State or Locality, Refund Amount, and Tax Year of Refund. However, the tax year is set to 2021 and cannot be changed. If I click to help icon beside this field, it says the following:
"What if I received a refund from a tax year other than 2021?
You'll need to manually fill out the Recoveries of Itemized Deductions Worksheet to calculate your taxable state or local refund, and you'll enter this final amount on a later screen."
Ok, that's great. So I cancel out of this page and it takes me back to the previous screen ("Your State or Local Tax Refund"). But if I click "No, Continue" it takes me out of this entire section.
What I ended up having to do was go back to the "Your State or Local Tax Refund" screen and click "Yes", and then enter $0 as the amount for the 2021 tax year refund. After saving this, on the "Your State or Local Tax Refund" I click "No, Continue". This time it takes me to the "Let's get more info about last year" screen where it asks "Do you want to answer questions about your 2021 federal tax return?". Presumably this is because of the $0 2021 tax year refund that I had entered. I click "No" because these questions are irrelevant to my 2020 tax year state refund. Then it takes me to the "Let's see which worksheet you need to use" screen which asks "Are you required to use the Recoveries of Itemized Deductions worksheet to calculate your taxable state refund?" which is what I needed to do - great! I then click "Save and Continue" which takes me to the "How much was your taxable state refund" screen where I am finally able to enter the taxable refunds.
So basically what I am requesting is that there should be a way to navigate to the "Let's see which worksheet you need to use" even when there are no refunds entered on the "Your State or Local Tax Refund" screen. Perhaps there should be a new screen after clicking "No, Continue" on the "Your State or Local Tax Refund" screen asking if any refunds for tax years prior to 2021 were received in 2022, where clicking "Yes" would take us to the "Let's see which worksheet you need to use" screen.
Thank you!
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Thank you very much for your feedback. We appreciate you taking the time to let us know about your experience and we will pass this on to our development team.
