ChristinaS
Expert Alumni

After you file

Yes- if you itemized your deductions on your 2015 federal Schedule A and took a deduction for the state tax withholding.

If you withheld these state's taxes in 2015, you would still have itemized that on your federal return. The fact that you got a full refund would not have impacted your ability to deduct these taxes.

You do have to pay tax on what you recovered in 2016, and deducted on last year's return.

View solution in original post