If I apply the state refund of 2017 for 2018 state tax, will I get a 1099-G from state in 2018?

[jinjunli5845]

Because next year we will use standard deduction and we don't want the refund get taxed by the fed.

[KatherineC · Accepted solution]

Yes, you will receive a Form 1099-G from your state. 

The amount that is taxable in 2018 will be calculated from the tax benefit you received from deducting the state taxes on your 2017 return.

It won't be affected by whether or not you itemize in 2018. 

[jinjunli5845]

Thanks for the helpful answer. To be more specific, If I apply all my 2017 CA refund to 2018 state tax, the CA franchise board will still issue me a 1099-G for the amount of 2017 refund therefor it will be counted as part of my 2018 income and subject to federal tax.  Am I correct?

[KatherineC]

Yes, that is correct.  It will also count as a payment of tax.  (There will be a limitation on the deduction for taxes in 2018 - the deduction for all state and local income taxes on your 2018 tax return is limited to $10,000.)