T K
Level 2

State tax refund is not taxable

Hello,

 

I itemized my deductions in 2023 and received state refund for california. Now I followed the steps for TurboTax but it shows that the state refund is not taxable.

 

Is that expected?

 

Some info about myself is that I am an employee with W2 and I dont have a business. I also have a house

 

And what are the cases that the state refund is not taxable despite itemization deduction?