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IS MY 2024 STATE OR LOCAL REFUND TAXABLE?
If you used standard deduction for your 2024 tax return, you do not have to enter a state or local tax refund you received in 2025. If you itemized deductions then your state or local refund that you claimed on the 2024 return----and received in 2025---must be entered as taxable income on your 2025 return. If you are not sure if you itemized for 2024, look at your 2024 Form 1040 line 12. Do you see the standard deduction amount or something else?
2024 STANDARD DEDUCTION AMOUNTS
SINGLE $14,600 (65 or older/legally blind + $1950)
MARRIED FILING SEPARATELY $14,600 (65 or older/legally blind + $1550)
MARRIED FILING JOINTLY $29,200 (65 or older/legally blind + $1550)
HEAD OF HOUSEHOLD $21,900 (65 or older/legally blind + $1950)
the refund may not be fully taxable even if you itemized
1) becuase the s income taxes paid in 2024 exceed the deductible limit of $10,000
or
2) Some of the taxes were paid in 2025, like a 1/15/2025 estimate for 2024 or an extension payment
TurboTax has a state tax refund worksheet thta should calculate the taxable portion if you useed TurboTax for 2024
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