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My 2016 Fed Return shows a refund of $3820 and my State Return shows a refund of $446. Do I show this as income on my 2017 tax return and if so, where?

 
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maglib
Level 10

My 2016 Fed Return shows a refund of $3820 and my State Return shows a refund of $446. Do I show this as income on my 2017 tax return and if so, where?

The state amount may be taxable on your 2017 tax return. It is only taxable to the extent you received a benefit for the deduction in the prior year. So for example if you took the standard deduction, you received no added benefit of itemizing state and local taxes paid so it's not income this year, another reason it may not be income is if you paid AMT and had your state and local tax deduction limited last year.

The state refund should be reported as a 1099G if you received a tax benefit for the related deduction last year.

I hope this made sense and was helpful?

**I don't work for TT. Just trying to help. All the best.
***Say "Thanks" by clicking the thumb icon in a post and that I solved your question
**Mark the post that answers your question by clicking on "Mark as Best Answer"

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1 Reply
maglib
Level 10

My 2016 Fed Return shows a refund of $3820 and my State Return shows a refund of $446. Do I show this as income on my 2017 tax return and if so, where?

The state amount may be taxable on your 2017 tax return. It is only taxable to the extent you received a benefit for the deduction in the prior year. So for example if you took the standard deduction, you received no added benefit of itemizing state and local taxes paid so it's not income this year, another reason it may not be income is if you paid AMT and had your state and local tax deduction limited last year.

The state refund should be reported as a 1099G if you received a tax benefit for the related deduction last year.

I hope this made sense and was helpful?

**I don't work for TT. Just trying to help. All the best.
***Say "Thanks" by clicking the thumb icon in a post and that I solved your question
**Mark the post that answers your question by clicking on "Mark as Best Answer"
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