How to I include a tax refund for my deceased parent's trust from 2024, on my 2025 taxes.

user17573452940 — Mon, 08 Sep 2025 15:32:57 GMT

My deceased parent (2024) had a trust and estate for which I filed taxes for the 2024 tax year. Both the trust and the estate received refunds which I received and deposited. My question is how to declare the refunds on my taxes for 2025 (several thousand dollars refunded)? Or do I not need to do this. The refunds were from both federal and state.

Thanks!

Re: How to I include a tax refund for my deceased parent's trust from 2024, on my 2025 taxes.

Opus 17 — Mon, 08 Sep 2025 15:44:51 GMT

Federal tax refunds are not taxable on your federal return.

State tax refunds are taxable income on your federal return for the year the refund was paid if you got a tax benefit from the refund in the past. For example, if you claimed a federal tax deduction for state taxes you paid (including estimated payments and withholding), and that deduction reduced your federal tax, then the refund is taxable income. If the refund is from an estate or trust tax return, then the estate or trust needs to file a 2025 return to report the refund and determine the tax, not a personal tax return. If you did not get a tax benefit from the state taxes on the 2024 return, then the refund is not taxable now.

State taxes are usually not deductible on state tax returns. In a few states, federal taxes are deductible on state tax returns. The same tax benefit rule applies. If you got a state tax benefit by deducting your federal taxes in 2024, then the federal refund is taxable to the state in 2025 (but not taxable to the feds).

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How to I include a tax refund for my deceased parent's trust from 2024, on my 2025 taxes.

Re: How to I include a tax refund for my deceased parent's trust from 2024, on my 2025 taxes.