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, you'll need to examine the worksheet menu in the return to determine what information is missing. In order to do that, you'll need a copy of the prior year tax return, in particular federal Form 1040, federal Schedule A, even if standard deduction was taken, 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 that shows.
- 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), but not more than the of state and local income taxes shown on the prior year Schedule A line 5d.
- 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.