Did not itemize on Federal, itemized on state. Is state refund taxable next year.

[sonnypanico]

Is state refund taxable next year, If I itemize on state and not on Federal returns

[CarolynM]

If this information wasn't helpful, what information would be?

[CarolynM]

Please see edit. The refund is only taxable to the extent you received a federal tax benefit, so if you did not itemize your federal return, there is no benefit. Sorry for the confusion.

[CarolynM · Accepted solution]

Unfortunately, a state tax refund is always income if you itemized your deductions to be reported on your federal tax return.

However, the taxable income is reduced by the federal tax benefit you received. 

For more information on what is taxable income, follow this link: 

https://turbotax.intuit.com/tax-tips/irs-tax-return/taxable-income-vs-nontaxable-income-what-you-sho...

[Edit 3/2/2019 8:08 AM SPT]