Is my 2016 state tax refund reportable and taxable even though the entire amount was taken by the state to pay back taxes?
Yes, the taxability of your 2016 refund is not determined based on your 2016 refund being used as a refund-offset to pay state back taxes; the taxability of your 2016 refund is based on the following (whether or not there was a refund-offset):
Is my 2016 state tax refund reportable and taxable even though the entire amount was taken by the state to pay back taxes?
Yes, the taxability of your 2016 refund is not determined based on your 2016 refund being used as a refund-offset to pay state back taxes; the taxability of your 2016 refund is based on the following (whether or not there was a refund-offset):
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