My 2015 state tax deduction was $7,220. My state tax refund was $677 in 2016. I have included as a refund on my 2016 return, but my form 1040 shows 0 on line 10. Why?
I do not understand why the refund from prior year is not taxable.
01542
1 Best answer
KrisD
Intuit Alumni
Jun 5, 2019 12:03:52 PM
You may have used the sales tax deduction as the option to deduct state tax in 2015.
Schedule A line 5b.
If that was the case, or if you took the standard deduction in 2015, the refund is not taxable in 2016.
1 Replies
KrisD
Intuit Alumni
Jun 5, 2019 12:03:52 PM
You may have used the sales tax deduction as the option to deduct state tax in 2015.
Schedule A line 5b.
If that was the case, or if you took the standard deduction in 2015, the refund is not taxable in 2016.