Solved
I Itimezed this year. Was I correct when I used 2016 State tax. On line 5 on the itemized deduction sheet I put in the amount of my State tax for 2016 that was on my W2
No text available
We can't see your return details, but in general if you itemize and claim state income tax you use what you actually paid -- that is, your W-2 state withholding plus any other state income tax payments made during 2016 (estimated tax, tax paid with your 2015 return, etc.)
That is why state tax refunds are taxable *IF* you itemized & claimed a state income tax deduction for the year of the refund; you are in effect recovering a deduction you took in a prior year. If you didn't itemize *OR* you didn't claim a state income tax deduction (usually because you elected sales tax instead), the refund isn't taxable because it's not a recovery of a past deduction.
That is why state tax refunds are taxable *IF* you itemized & claimed a state income tax deduction for the year of the refund; you are in effect recovering a deduction you took in a prior year. If you didn't itemize *OR* you didn't claim a state income tax deduction (usually because you elected sales tax instead), the refund isn't taxable because it's not a recovery of a past deduction.
Get answers to all your tax questions
Our experts are available on-demand, no appointment needed. Get help all year long with TurboTax Expert Assist.
Explore your optionsEnter your E-mail address. We'll send you an e-mail with instructions to reset your password.
©1997-2026 Intuit, Inc. All rights reserved.
Intuit, QuickBooks, QB, TurboTax, Credit Karma, and Mailchimp are registered trademarks of Intuit Inc. Terms and conditions, features, support, pricing, and service options subject to change without notice.
Security Certification of the TurboTax Online application has been performed by C-Level Security.
By accessing and using this page you agree to the Terms of Use.
© 2026 Intuit Canada ULC or its affiliated companies. All rights reserved. Intuit, QuickBooks, QB, TurboTax and ProFile are registered trademarks of Intuit Inc. Terms and conditions, features, support, pricing, and service options subject to change without notice.
Copyright © Intuit Canada ULC, 2026. All rights reserved.
© 2026, Entreprises Intuit Canada ULC ou ses sociétés affiliées. Tous droits réservés. Intuit, QuickBooks, QB, TurboImpôt et ProFile sont des marques déposées d’Intuit Inc. Les modalités, prix, fonctions et options de service et de soutien peuvent changer sans préavis.
© 2026, Entreprises Intuit Canada ULC. Tous droits réservés.