State Tax Refund - Received in Current Year for Last Year's State Return
1

If you itemized deductions on your prior year tax return, then a state refund that you received this year may be taxable. If you did not itemize deductions on your prior year tax return, your state refund won't be taxed.

To report Form 1099-G State Refund Document in the TaxAct program:

  1. From within your TaxAct return (Online or Desktop), click Federal (on smaller devices, click in the top left corner of your screen, then click Federal).
  2. Click State Income Tax Refund, then click + Add Form 1099-G State Refund Document to create a new copy of the form or click Edit to edit a form already created (desktop program: click Review instead of Edit).
  3. Continue with the interview process to reach the screen titled Good news! None of your 2023 state or local income tax refund is taxable or Your taxable 2023 state or local income tax refund is $XX.

Note that any link in the information above is updated each year automatically and will take you to the most recent version of the webpage or document at the time it is accessed.