Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
New Member
posted Mar 7, 2025 2:55:55 PM

Are my State and Federal tax returns, taxed?

0 2 730
2 Replies
Level 15
Mar 8, 2025 7:12:34 AM

@dfergy250f 

 

Your state "Refund" might be taxed by the Feds.....depends on whether you used the Std Ded las year, or Itemized Deductions.....If you sued Std Ded of the IRS/Feds for 2023 taxes, then it will NOT be federal income.

Just enter the amount on State Refund line in the Federal income page, and work thru the follow-up questions.

 

Your Federal "Refund", might be taxable by the state, if your state is one of the few states that allows a state income deduction for Federal taxes paid.

Level 15
Mar 8, 2025 8:37:34 AM

There are several  states that might tax your previous year federal refund----Alabama, Iowa, Missouri, Montana, and Oregon.  If you are filing in one of these states watch for it when you prepare your state return.

 

 

IS MY 2023 STATE OR LOCAL REFUND TAXABLE?

 

If you used standard deduction for your 2023 tax return, you do not have to enter a state or local tax refund you received in 2024.   If you itemized deductions then your state or local refund that you claimed on the 2023 return----and received in 2024---must be entered as taxable income on your 2024 return.  If you  are not sure if you itemized for 2023, look at your 2023 Form 1040 line 12.   Do you see the standard deduction amount or something else?

 

2023 STANDARD DEDUCTION AMOUNTS

 

SINGLE $13,850  (65 or older/legally blind + $1850) 

 

MARRIED FILING SEPARATELY $13,850  (65 or older/legally blind + $1500)

 

 MARRIED FILING JOINTLY $27,700  (65+/legally blind) )  + $1500 per spouse

 

 HEAD OF HOUSEHOLD  $20,800 (65 or older/blind)  + $1850)

 

If you need to enter a state or local refund Go to Federal>Wages & Income>1099-Misc and Other Common Income>State and Local Tax Refunds on Form 1099-G