Hello, For tax year 2023 filing, I received $25 interest in 2024 on my Michigan state income tax refund because the state did not send me the refund until August 2024. I received a 1099G from Michigan Dept of Treasury that says "calendar year 2024". On box 2, "Michigan Income Tax Refund of Offset", it shows "Refund $0.00" and "Interest $25.00". I called the Michigan Dept of Treasury and was told if I claimed "standard deduction" on federal income tax (which I claimed standard deduction for 2023), the Michigan 1099G is for my information only and I don't need to report the $25 interest from Michigan state as taxable income on my 2024 federal tax return. Can someone help me to confirm this? I know that if I receive interest from federal income tax refund for the previous year, I have to report it as taxable interest income. Is the interest from state income tax refund different, that if I claimed standard deduction for year 2023, the interest from 2023 Michigan state income refund is not taxable for 2024 federal filing? Thank you.
