Get your taxes done using TurboTax

State refunds are only taxable in the year received if you deducted them in a prior year as an itemized deduction on Schedule A. 

If you did not itemize, you can enter $0 as the taxable amount of your refund. To do so, please follow the instructions below:

1. Open your return.
2. Click on Federal on the left hand side.
3. Click on Wages & Income.
4. Under Other Common Income, click Start next to Refunds Received for State/Local Tax Returns.
5. Answer yes to the question Any state or local income tax refunds?
6. Answer the questions on the following two screens.
7. Click Done on the State and local tax refund summary screen.
8. On the Refunds From Years Prior to 2023 screen, enter $0 in the Taxable Amount box if you did not itemize your deductions for tax year 2019.