If your state refund is not taxable, it won't show up on Form 1040, Line 10, Taxable refunds, credits, or offsets of state and local income taxes.
Your refund counts as taxable income if:
- You itemized deductions last year, instead of taking the standard deduction.
- You claimed state and local income taxes (not general sales taxes).
- Claiming the deduction helped you increase your federal refund or lower your tax bill.
Even when your refund is taxable, it may not be the entire amount. It depends on how much the deduction affected your refund or tax bill. Just answer a few simple questions about last year’s refund, and we’ll calculate the taxable amount for you.
Related Information:[Edited 3-11-2020|10:30 am PST]
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