topic Re: Taxability of state income tax refund in State tax filing

Taxability of state income tax refund

lbsheets07 — Mon, 20 Jan 2025 01:01:41 GMT

I lived in two states in 2023. In 2024, I received a 2023 state income tax refund for State A and no refund for State B. I live in State B and no longer have to file a tax return in State A. Do I have to list my 2023 State A refund, received in 2024, on my 2024 federal return as 2024 income?

Re: Taxability of state income tax refund

xmasbaby0 — Mon, 20 Jan 2025 01:10:00 GMT

Your state refund is only taxable if you had itemized deductions on your 2023 federal return. If you used your standard deduction for 2023, then you do not have to enter a state refund.

Re: Taxability of state income tax refund

Mike9241 — Mon, 20 Jan 2025 17:08:49 GMT

if your tax deduction on schedule A was limited to $10,000 ($5,000 MFS)

you need to see this webpage since some of the refund might not be taxable due to the limitaion.

if you used Turbotax in 2023 and use for 2024 it should handle the taxability of the refund properly

https://www.irs.gov/pub/irs-pdf/i1040gi.pdf see page 84

in certain cases you'll need to use iRS PUB 525

https://www.irs.gov/forms-pubs/about-publication-525

this version is for 2023 so change the years from 2023 to 2024 start page 23) and then the worksheets 2 and 2a