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Boater418
New Member

If I receive a large state refund this year (CA), how will that be treated on my 2019 Federal Return?

If I receive a large state refund this year (CA), how will that be treated on my 2019 Federal Return?  In other words, will that be considered income in 2019?  I believe that it would have been before the new tax law, but with the $10,000 cap on deductions for state and local taxes, it is unclear to me what this will  mean going forward.  In this case, the large ($15K) refund is an anomaly, not likely to occur in the future.

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SharonC1
New Member

If I receive a large state refund this year (CA), how will that be treated on my 2019 Federal Return?

If you itemized your deductions on the 2018 tax return, the entire amount of your CA refund will be considered income in 2019.

If you used the standard deduction on your 2018 tax return, none of your CA refund will be considered income in 2019.

If you need help determining if you used the standard deduction or if you itemized your deductions (you would only have done one), let me know in a comment below.

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1 Reply
SharonC1
New Member

If I receive a large state refund this year (CA), how will that be treated on my 2019 Federal Return?

If you itemized your deductions on the 2018 tax return, the entire amount of your CA refund will be considered income in 2019.

If you used the standard deduction on your 2018 tax return, none of your CA refund will be considered income in 2019.

If you need help determining if you used the standard deduction or if you itemized your deductions (you would only have done one), let me know in a comment below.

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