Effects of Delay in Amended Return on Next Year's Filing

[DX-hound]

I just realized I missed some deductions in my 2023 return, enough to consider filing an amended return for both Federal and State.  But I read where the IRS processing time for amended returns is now quite long.   IRS site says up to 16 weeks but I've read about months more.  No idea about my State's processing time.

If I file my 2024 return by April 15, 2025, but before the 2023 amendment is processed and complete, does that mean I would then need to file an amended return for 2024 because of the additional refund I received with the 2023 amendment?   I really don't want to ask for an extension in 2025 to wait for the 2023 amended return to finish processing.  Could end up in an endless loop of amended returns? 

[DoninGA]

Federal tax refunds are not reported on a federal tax return.

State tax refunds are only reported as an itemized deduction on Schedule A plus the total of itemized deductions must be greater than the Standard Deduction for your filing status to have any tax benefit.

You have 3 years from the due date of the original tax return to file an amended tax return with a tax refund.

[DX-hound]

Thanks for the quick answer.  What's stuck in my head is a TurboTax step that says something along the lines of "Let's see if you State Refund is Taxable."   When my amended 2023 State return results in an additional refund, might that snarl up my 2024 return when I enter the State refund BEFORE the State amended return processes?

Thanks again.

[rjs]

On your 2024 federal tax return you would only report a state tax refund that you receive IN 2024. If you receive a state refund in 2025 you would report that on your 2025 federal tax return. It doesn't matter what year the state refund is FOR. What matters is when you receive it.

[DX-hound]

Thanks!   Now I understand the flow of things.