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Desktop: State and Local Income Tax Refund Worksheet shows no calculation

In the federal individual income tax return in TaxSlayer Pro, if no calculation is being done on the State and Local Income Tax Refund Worksheet due to line 1 equaling $0, there may be information missing.

Before assessing the worksheet, bear in mind that the prior year refund is not taxable in the current year if, in the prior year, the taxpayer either (a) didn’t itemize deductions, or (b) elected to deduct state and local general sales taxes instead of state and local income taxes. Thus, the State and Local Income Tax Refund Worksheet only needs to be completed if in the prior year the taxpayer itemized deductions on Schedule A and included state and local income taxes on Schedule A line 5a.

To assess the worksheet, examine its menu in the return in TaxSlayer Pro to determine what information is missing, if any. You'll need a copy of the prior year tax return, in particular federal Form 1040 and Schedule A, as well as all state returns to confirm prior year state refunds.

To fix or verify the calculation, from the Tax Menu in the return (Form 1040) select:

  • Income
  • State & Local Refunds
  • State Refund Worksheet without Estimates - Complete every line as needed.
    • Prior Year State Income Tax Refunds - Enter the sum of the refund amounts from all states (as shown on Form 1099-G or similar statement).
    • Prior Year State Income Tax Withheld - If state and local income taxes were deducted on the prior year Schedule A line 5a, enter the amount. Otherwise, leave blank.
    • Prior Year Sales Tax Deduction - If general sales taxes were deducted on the prior year Schedule A line 5a, enter the amount. Otherwise, leave blank.
    • Prior Year Total State and Local Taxes - Enter the amount on the prior year Schedule A line 5d.
    • Prior Year Limited State and Local Taxes - Enter the amount on the prior year Schedule A line 5e.
    • Prior Year Total Itemized Deductions - Enter the amount on the prior year total itemized deductions on Schedule A line 17.
    • Prior Year Standard Deduction - Select this line to confirm the taxpayer's filing status last year and also if the prior year Form 1040 indicates they were blind.