- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Deductions & credits
On your 2021 federal return did you itemize deductions or take the Standard Deduction? Just enter the full state refund and Turbo Tax will calculate how much is taxable if any.
A State Tax Refund is taxable if you itemized deductions on that prior year's federal return and took a deduction for state income taxes instead of the sale tax. You got a deduction benefit for it so now you have to include it as income. If you took the standard deduction it is not taxable and you don't need to report it.
‎September 29, 2023
8:44 PM