I received a state refund in 2021, the amount is contained in the income section of Turbotax, but I do not see it reported on my Federal return. Should I have a Sched 1?

[rcfrohock]

I was expecting to see my state refund listed on Line 8 of the 1040, with Schedule 1 as support, but I do not see any amount and the schedule is not part of my return. Is there a minimum amount or some other tax rule that changed from 2020 to 2021?

[VolvoGirl · Accepted solution]

Did you itemize deductions on your 2020 federal return?

A State Tax Refund is taxable if you itemized deductions on that prior year's federal return and took a deduction for state income taxes instead of the sale tax.  You got a deduction benefit for it so now you have to include it as income. If you took the standard deduction it is not taxable and you don't need to report it.

[rcfrohock]

That’s exactly it. Last year was the first time I took the standard deduction so I have been accustomed to reporting the refund. Thank you for clarifying that for me.