State Tax Refund handling in TurboTax

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D L

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Jan 3, 2022, 3:12:49 PMJan 3
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If income tax for 2020 was revised after several months of filing to correct an error and TurboTax was used to correct an error. would the transfer of the 2020 file to 2021 reflects the change without a need to enter manually the revised refund amount? TurboTax did not flag the State Income Tax Refund entry or form to be completed and I assume that it may have transferred the changes and there is no need for further entries.

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ira smilovitz

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Jan 3, 2022, 5:49:20 PMJan 3
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On Monday, January 3, 2022 at 3:12:49 PM UTC-5, debbie.l...@gmail.com wrote:
> If income tax for 2020 was revised after several months of filing to correct an error and TurboTax was used to correct an error. would the transfer of the 2020 file to 2021 reflects the change without a need to enter manually the revised refund amount? TurboTax did not flag the State Income Tax Refund entry or form to be completed and I assume that it may have transferred the changes and there is no need for further entries.
>
> --

I don't use TT, but I would be surprised if it didn't transfer the last information in the previous year's file - the amended return, if one was prepared. That said, one should always check any data supposedly carried forward for potential errors. No software is foolproof or error free.

Ira Smilovitz, EA
Leonia, NJ

Bob Sandler

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Jan 3, 2022, 7:25:21 PMJan 3
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>If income tax for 2020 was revised after several months of
>filing to correct an error and TurboTax was used to correct
>an error. would the transfer of the 2020 file to 2021
>reflects the change without a need to enter manually the
>revised refund amount? TurboTax did not flag the State
>Income Tax Refund entry or form to be completed and I assume
>that it may have transferred the changes and there is no
>need for further entries.

What exactly does "revised" mean, and who revised what?

Was it the federal or the state tax return that was changed?
Are you saying that there was a change to the state tax
return that resulted in additional state refund that was
received in 2021?

Who "revised" the return? Did you file an amended return, or
did the IRS or the state make a change?

For 2020 did you use TurboTax Online or the CD/Download
TurboTax software that you install on your own computer?

If you filed an amended return with TurboTax Online, it will
transfer the 2020 information from the amended return to the
2021 return. If you used the CD/Download TurboTax software
you could possibly have more than one 2020 tax return file.
When you start your 2021 return, you choose the 2020 file to
transfer from. It's up to you to make sure you transfer from
the file that contains the amended return. If the IRS or the
state adjusted your tax return, TurboTax has no way of
knowing about the adjustment. It will transfer the 2020
information from the return that you filed. You then have to
enter any adjustments manually.

Keep in mind that if you did not claim an itemized deduction
for state income tax on Schedule A of your 2020 federal tax
return, any change in your 2020 state tax refund has no
effect on your 2021 tax return. In that case, it doesn't
matter what state refund amount is transferred.

The best place to get answers about TurboTax is in the
TurboTax support community at the following link.

https://ttlc.intuit.com/community/home/misc/03/en-us

Bob Sandler

MZB

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Jan 5, 2022, 10:05:14 AMJan 5
to
Bob:

I'm in a similar situation with the Fed IRS.They ended up giving me a
larger payment due to stimulus payment discrepancy. I don't itemize.
Should this impact my 2021 return?

Mel

Bob Sandler

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Jan 5, 2022, 11:25:52 AMJan 5
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>Bob:
>
>I'm in a similar situation with the Fed IRS.They ended up giving me a
>larger payment due to stimulus payment discrepancy. I don't itemize.
>Should this impact my 2021 return?
>
>Mel

Mel,

The 2020 stimulus payment, or the Recovery Rebate Credit on
your 2020 tax return, does not affect your 2021 tax return.

Bob Sandler
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