- TURBOTAX RETURN NOT CHANGING WITH STANDARD DEDUCTION PLUS
- TURBOTAX RETURN NOT CHANGING WITH STANDARD DEDUCTION FREE
TURBOTAX RETURN NOT CHANGING WITH STANDARD DEDUCTION FREE
Taxpayers are eligible for TurboTax Free Edition if they file a simple tax return (Form 1040/Form 1040-SR or Form 1040/Form 1040-SR + unemployment income only with no schedules): that includes W-2 income, limited interest and dividend income reported on a 1099-INT or 1099-DIV, claiming the standard deduction, Earned Income Tax Credit, the Child Tax Credit and unemployment income reported on Form 1099-G. TurboTax has helped millions of qualifying Americans file their federal and state taxes for free. That’s why, for the seventh year in a row, TurboTax is offering free federal and state tax filing with TurboTax Free Edition for filers with a simple tax return only. And what could be better than paying $0 to do your taxes? Absolutely nothing! I don’t understand why I am being double taxed for monies I’ve already been taxed for.TurboTax knows that your tax refund may be the biggest paycheck you receive all year. i told her i don’t do my state taxes at the same time i do my federal taxes. The lady said i should have put it down on my paperwork.
TURBOTAX RETURN NOT CHANGING WITH STANDARD DEDUCTION PLUS
I received this letter on the 4th of Apr 2015 and if I don’t pay the taxes on it by the 29th of Apr 2015, I would have to pay the interest, plus a penalty. I explained to her that this was a refund for overpayment, but she would not answer why I had to pay money again. I called the IRS number that sent me the 1099 and the lady that answered the phone would not explain the reason why I owe, but that I could answer yes or no to the form and send it back with my reasoning on why I did not think I owed with the proper paperwork to support. So now they sent me a letter stating I owe them federal taxes on that money. Now my $1200 dollars is considered a extra income that has been added to my total income for that year (2013). I received a letter from the IRS stating, that the state reported I had received a $1200 refund check in 2013 for overpayment of my state taxes. TurboTax Live tax experts are available in English and Spanish, year-round and can also review, sign, and file your tax return. If you have questions, you can connect live via one-way video to a TurboTax Live tax expert to get your tax questions answered. If you deducted your state and local income taxes last year and also received a state refund last year, then your state tax refund that you received from the previous year may be taxable.ĭon’t worry about knowing these tax rules, TurboTax will ask you simple questions about you and give you the tax deductions and credits you’re eligible for based on your answers. On last year’s return, if you itemized your deductions and were able to deduct your sales tax and not your state and local income taxes, then your previous year’s state refund is not taxable when you file this year.
There’s an important note to consider in regards to sales tax versus state and local income tax. Sales Tax Deducted, But Not State Income Tax? For instance, if you didn’t itemize your deductions last year and instead you took the standard deduction, then your state tax refund from the previous year is tax-free this year. So, why is this happening? What gives?īefore we go into that, know that there are times when your state and local tax refund is not taxable – we’ll dive into this scenario first.Ī general rule of thumb: If you didn’t deduct state and local income taxes last year, you don’t need to pay taxes on your state and local tax refund this year. First, you get to take a deduction of your state and local taxes, then all of a sudden the next year you get a Form 1099-G from your state and you’re paying taxes on your state and local tax refunds. For those who itemize their deductions, it’s one of the stranger parts of the tax code.
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