Don't believe determination that my state tax refund is not taxable

Forum|Forum|6 years ago
February 6, 2020
2 replies
34 views

Received a refund of our state taxes last year. Itemized deductions. Expected that this year -- like in all previous years -- our state tax refund would be taxable. Checked the box saying we'd itemized deductions - that we did not use the standard deduction - and the determination came back that our refund is NOT taxable. I find it hard to believe. Is this an error in the software? Or are there other factors that influence this determination? Yes -- the amount of taxes we paid the state exceeded -- by quite a margin -- the $10,000 cap. I'm nervous. Don't want to assume our refund will not be taxable .. file and then discover down the road that it should have been. And that there was an error in TurboTax.. that the software mis-interpreted my "I itemized deductions" as "I claimed the standard deduction". Thanks!

Best answer by klehnhardt

We cannot see your 2018 tax return but if your total taxes less the amount of your state refund still exceeded the $10,000 limitation, the State Refund is not taxable on this year’s return.

You only to pay taxes on the state refund if you deducted the state taxes on the 2018 return.

klehnhardtAnswer

Level 10

We cannot see your 2018 tax return but if your total taxes less the amount of your state refund still exceeded the $10,000 limitation, the State Refund is not taxable on this year’s return.

You only to pay taxes on the state refund if you deducted the state taxes on the 2018 return.