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In 2017, I lived in two states. For simplicity, I overpaid state A by 1k, and underpaid state B by 1k. So in 2018, I paid state B 1k and received a refund from A.
I itemized my 2017 return. Do I need to pay tax on the 1k refund ? The net refund between the two states is 0.
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In 2017, I lived in two states. For simplicity, I overpaid state A by 1k, and underpaid state B by 1k. So in 2018, I paid state B 1k and received a refund from A.
Since you did itemize on your 2017 return, you do need to include the refund from state A as income.
You can also claim the amount that you paid to state B as a deduction (if you are itemizing for 2018, subject to the $10,000 state and local income tax limitation).
You cannot add the two states together to cancel each other out.
See the information below for instructions to enter the balance due that you paid for state B.
https://ttlc.intuit.com/replies/3302371