Is California tax refund for previous year taxable this year by California? Or does California tax the tax refund it issued previous year?

[viktoriyab11 · Accepted solution]

No, its don't. State income tax refund taxed on the federal return is subtraction reported in column B, Schedule CA (540).

[glennr1]

 FTB Pub 1001:  Federal law includes the state income tax refund in income. California excludes the state income tax refund from income