Drake Tax - 1099-G: State and Local Tax Refund Taxability

Worksheet to compute taxable and nontaxable portions of Form 1099-G

Go to the 99G screen and enter information in the Additional Box 2 Information fields.

Calculate and view the return. Look for a worksheet named Wks CY Refunds, 20XX State and Local Income Tax Refund Worksheet, and review it for information on whether or not there will be a taxable event.

If the return was completed in the prior year and updated to the current year, the taxable amount of state refund would have been calculated and updated to screen 3. Do not duplicate entries on the 99G screen. See Drake Tax - 1040: Federal Taxation of State Refund and Prior-year AMT details on the amount updated from one year to the next.