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posted Feb 10, 2025 9:36:10 AM

When it asks "any state or any local refunds" It says state and local but not Federal. So should I add the Fed refund ?

When it asks "any state or any local refunds" It says state and local but not Federal. So should I add the Fed refund ?

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1 Best answer
Level 15
Feb 10, 2025 9:39:39 AM

No.  You  do not enter last year's federal refund anywhere.  If you got a state or local refund it may be taxable income on this year's federal return.  

 

A State Tax Refund is taxable if you itemized deductions on that prior year's federal return and took a deduction for state income taxes instead of the sales tax. You got a deduction benefit for it so now you have to include it as income. If you took the Standard Deduction it is not taxable and you don't need to report it. Check your 1040 line 12 to see which deduction you took.

2 Replies
Level 15
Feb 10, 2025 9:38:55 AM

No,  you do not add your federal refund.   Follow the directions and add only state or local refunds if that is what it is asking for.    If you itemized deductions on your 2023 federal return and then received refunds from your state or local government, those refunds are taxable income on your 2024 federal return.   If you just used standard deduction for 2023, they are not taxable and you do not have to enter them.

Level 15
Feb 10, 2025 9:39:39 AM

No.  You  do not enter last year's federal refund anywhere.  If you got a state or local refund it may be taxable income on this year's federal return.  

 

A State Tax Refund is taxable if you itemized deductions on that prior year's federal return and took a deduction for state income taxes instead of the sales tax. You got a deduction benefit for it so now you have to include it as income. If you took the Standard Deduction it is not taxable and you don't need to report it. Check your 1040 line 12 to see which deduction you took.