Q's say that Turbotax will decide if my state refund from last year is taxable-it asked me if I got one but never gave me a place to enter it. Does that mean it's not?

[dancer967]

I itemize so I thought my state refund would be taxable but I didn't have a place to enter it, Turbo tax says my return is complete - is that something I should fix somehow?

[Karis_F · Accepted solution]

You should report a prior-year state tax refund on your current year tax return. 

If you itemized deductions on your 2024 Federal tax return (Schedule A) and received a tax benefit from state taxes, the refund may be part of taxable income on your 2025 tax return.

To see if your prior-year state tax refund counts as taxable income on your current return go to Wages & Income>Other Common Income>Refunds Received for State/Local Tax Returns in TurboTax Online.

See this TurboTax article on reporting a state or local refund from a prior year.