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?
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?
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