Thank you for providing additional comments regarding my second inquiry.
Though I wasn’t able to fully understand what you were saying – sorry about that.
Just wanted to share what I’m understanding so far:
A state income tax refund is taxable in the year I receive it only if I claimed itemized deductions (and deducted state income taxes) in the prior year.
📌 In my case:
- I filed my 2023 federal return in 2025 (late).
- I received both my 2023 federal refund and my 2023 California state refund ($2,822) in 2025.
- That means I did not receive the refund in 2024 at all.
👉 Therefore:
- The $2,822 does not belong on my 2024 tax return.
- It would instead be considered for my 2025 tax return (filed in 2026), if it is taxable (again, only if I itemized and claimed a deduction for state income tax in 2023).
✅ So yes — in TurboTax for your 2024 return, I should overwrite/delete the $2,822 state refund entry, since I didn’t actually receive it in 2024, right?
