Your tax refund from a state or local government for the prior year may be considered taxable income if you itemized deductions on your prior- year federal return.
The opposite is also true: If you claimed the standard deduction instead, your prior-year state or local income tax refund is not taxable on this year’s federal return.
Generally, the state or local taxing authority will issue a Form 1099-G if you received a tax refund. However, many states are no longer mailing these forms to taxpayers.
To enter Form 1099-G in TaxAct:
The State Refund Worksheet reflects the calculation of the amount (if any) of the state income tax refund received that would be taxable and transferred to Line 1 of IRS Schedule 1 (Form 1040).
To review the calculations and/or print the State Income Tax Refund worksheet:
In the print dialog box that appears you are able to choose if you wish to send the output to a printer or a PDF document.