Based on the latest IRS guidance:
In addition, many people in Georgia, Massachusetts, South Carolina and Virginia also will not include state payments in income for federal tax purposes if they meet certain requirements. For these individuals, state payments will not be included for federal tax purposes if the payment is a refund of state taxes paid and either the recipient claimed the standard deduction or itemized their deductions but did not receive a tax benefit.
In the last two years I owed taxes to the state of Georgia and paid what I owed and afterward received the maximum 500 dollar refund of state taxes… I claim standard deduction but I’m confused what do they mean by receive a tax benefit?? I don’t think I got a tax benefit but I’m not 100 percent sure because I need clarification on what that means.. help?
