1. Unless the total of All your itemized deductions in 2021 are greater than the standard deduction for your filing status then the deduction for state taxes withheld on Schedule A is not relevant.
Standard deductions for 2021
- Single - $12,550 add $1,700 if age 65 or older
- Married Filing Separately - $12,550 add $1,350 if age 65 or older
- Married Filing Jointly - $25,100 add $1,350 for each spouse age 65 or older
- Head of Household - $18,800 add $1,700 if age 65 or older
2. If you did not itemize your deductions in 2020 then the 2020 state tax refund is not entered as income on your 2021 federal tax return
3. Adjust your state tax withholding on your wages so that you will receive little or no state tax refund for tax year 2022
