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Level 1
posted Jun 6, 2019 9:15:20 AM

How do you record the state tax refund from the previous year as income when married filing separately?

We filed a joint return in 2016 but will get more back by filing a separate return in 2017. On the return it treats our state tax refund from the previous year as income. Do we split the $621 dollar amount or do I or my wife record the whole amount on one of our returns?

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1 Best answer
Expert Alumni
Jun 6, 2019 9:15:21 AM

If you filed Married Filing Jointly (MFJ) last year, the state most likely reported the refund on your 1099-G and to the IRS under both of your names and social security numbers.

If you choose to file separately from your spouse this year, you would typically divide the amount reported on 1099-G or refunded on your state taxes between you and your spouse.

If you did not itemize your deductions for the prior year, the refund is not taxable to you.

2 Replies
Expert Alumni
Jun 6, 2019 9:15:21 AM

If you filed Married Filing Jointly (MFJ) last year, the state most likely reported the refund on your 1099-G and to the IRS under both of your names and social security numbers.

If you choose to file separately from your spouse this year, you would typically divide the amount reported on 1099-G or refunded on your state taxes between you and your spouse.

If you did not itemize your deductions for the prior year, the refund is not taxable to you.

Returning Member
Apr 11, 2020 2:08:33 PM

My husband died in 2018 but I filed a joint return, indicating on it that he had passed away during the year.  The state income tax refund came in both our names as it was based on both our incomes.  Do I report the whole refund on my 2019 tax return or just half?