DianeC958
Expert Alumni

Get your taxes done using TurboTax

TurboTax takes the information from your prior year to see the amount of benefit you received from your deduction of the State Income Tax you paid.

 

If you did not receive any benefit from the deduction the refund is not taxable.

 

There is a worksheet that you can look at with all of the calculations to show why the program is not taxing you on this amount.  The worksheet is called State and Local Income Tax Refund Worksheet.

 

 

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