Is the interest paid on prior year AMENDED state tax refunds reportable on federal returns?

[BarbL · Accepted solution]

If you amended a prior year state tax return and received a refund with interest, the interest is included in your taxable income for federal and state returns.  Your state probably sent a tax document for you to use in reporting the interest.  Enter it in the 1099-INT section, along with any other 1099-INT forms you received.