The Saving Advice Forums - A classic personal finance community.

2018 Federal Tax Question

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • 2018 Federal Tax Question

    To the Forum:
    On my 2017 federal tax return I itemized deductions. I also made one of my four estimated tax payments (the last one) for 2017 in January of 2018. I received a 2016 Georgia state tax refund and that refund was not considered income on my 2017 federal return. The reason that was stated was because part of my 2017 federal estimated taxes was paid in 2018. I have the exact same situation now in play for my 2018 federal tax return with the exception that I will not be itemizing this year because of the increased standard deduction. In preparing my 2018 federal return using TurboTax my wife and I each created separate files as a way of double checking ourselves. My file is not including my 2017 Georgia state tax refund as income on my 2018 federal tax return. The reason is being stated as because I paid part of my 2018 federal estimated taxes in January 2019 (just like the previous year's scenario). However, my wife's file is stating that the 2017 Georgia state refund is considered income on our 2018 federal tax return. Is this a glitch in the TurboTax software or is it because we are not itemizing deductions for 2018? Which is the correct version?

  • #2
    Honestly, I'd call TurboTax in this situation. It does sound like a glitch. A local tax advisor may also be helpful.
    My other blog is Your Organized Friend.

    Comment


    • #3
      Are you absolutely sure that each of you entered all of the data and answered all of the questions exactly the same way?
      Steve

      * Despite the high cost of living, it remains very popular.
      * Why should I pay for my daughter's education when she already knows everything?
      * There are no shortcuts to anywhere worth going.

      Comment


      • #4
        That don't make sense to me, but I was wondering the same thing as Disneysteve--how did you and your wife's answers differ? I am also assuming that you mean that you and your wife are filing a joint return and not separate.
        If you itemized in the previous year, your state income tax refund may be taxable in the next tax year.
        I am not a tax expert, but here are a couple of situations I am aware of:

        If you deducted your sales tax and not your state income taxes on last year’s return, then your state refund is not taxable when you file this year.

        Did you have to pay AMT? If so--you have to answer some additional questions on Turbotax (based on last year's results)--depending on the results of these answers it may reduce your taxable amount of your state tax refund. The reason for this is because AMT phases out the state tax deduction.

        Here is some guidance from the IRS: https://www.irs.gov/faqs/interest-di...urns-all-other

        More info:

        Comment

        Working...
        X