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, follow the steps below. 
Online
Dashboard
  1. From within your TaxAct return, click Income. 
    • On smaller devices, click the menu at the top left corner of your screen, then make your selection.
  2. Click the Explore More drop-down.
  3. Click Add beside State/Local Tax Refunds
  4. Complete the rest of the interview process. 
Classic
  1. From within your TaxAct return, click Federal. 
    • On smaller devices, click the menu at the top left corner of your screen, then make your selection.
  2. Click State Income Tax Refund.
  3. Complete the rest of the interview process. 
Desktop
  1. From within your TaxAct return, click Federal. 
  2. Click State Income Tax Refund.
  3. Complete the rest of the interview process.