It depends. The IRS operates on calendar years.
Report any prior year tax refunds received — or payments made — in 2022 on your sister’s 2022 return. Anything received in 2023 will go on next year’s return.
If IRS or the California Franchise Tax Board paid interest on those refunds, you’ll have to include those amounts as interest income. You should get a 1099-INT.
State tax payments are deductible. Federal payments are not, nor are state and federal penalties and interest for unpaid tax.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
