Are IRS Refunds Ever Taxed by States

[Boombaby99]

Are federal refunds counted as taxable income in any states?

[xmasbaby0]

There are a few states in which your federal refund might be taxed:

Alabama, Iowa. Missouri, Montana, and Oregon.  I

[SteamTrain]

Possibly...depends on the state.

There are a couple of states (3 or 4...or??)  that allow a state income deduction for taxes paid to the IRS in one year, and if you get a IRS refund, then it becomes a State income item the next.

Please, always indicate what state you are dealing with...we don't know in this public forum unless you tell us.

[Boombaby99]

I was just curious if any states ever taxed it. I've never heard of such a thing before until I read online that sometimes you have to report your federal refund on your state taxes and was curious when this would ever happen to someone. This was a general site, not state specific. 

[Boombaby99]

I don't live in any of those states. That must be why I've never heard of that. I've been in PA most of my life.