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ahasan82
New Member

I had a tax deduction last year for student loan interest payments, so am I supposed to consider my tax return from 2016 as part of my income?

When I was filing my taxes in 2016, I believe I received a deduction due to student loan payments in 2015. I saw a question on TurboTax that asked about including last year's return on my income. Do I include it on my income because there was a deduction? Thanks.
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Accepted Solutions
DDollar
Expert Alumni

I had a tax deduction last year for student loan interest payments, so am I supposed to consider my tax return from 2016 as part of my income?

A refund of federal tax paid is not income and should not be claimed as such on your tax return.  A refund of state income tax may be considered taxable income but only if you itemized your deductions.  If you claimed the standard deduction a state income tax refund is NOT taxable.

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1 Reply
DDollar
Expert Alumni

I had a tax deduction last year for student loan interest payments, so am I supposed to consider my tax return from 2016 as part of my income?

A refund of federal tax paid is not income and should not be claimed as such on your tax return.  A refund of state income tax may be considered taxable income but only if you itemized your deductions.  If you claimed the standard deduction a state income tax refund is NOT taxable.

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