State Refund Taxable for 2019? If we itemize deductions using state sales tax in 2018 will we have to include any portion of the State Refund as income in 2019?

[maryasmc]

We can either use our state income tax or state sales tax for 2018 for our itemized deductions. In both cases we are capped as many people are in certain states at 10K for combined taxes including aforementioned along with property taxes. We understood that if one utilized state sales taxes in the past for itemized deductions in lieu of state income taxes one did not have to include their state refund as income the following year. Will this be the same for state refunds of 2018 not being taxed as income in 2019 if one utilizes state sales taxes in lieu of state income taxes as an itemized deduction? 

[Anita01 · Accepted solution]

Yes, if you itemize but use the state sales tax instead of state and local income tax, the state refund is not taxable in 2019

[maryasmc]

Is this also the answer if one itemizes deductions and takes the state sales tax deduction in 2018 but had itemized deductions in 2017 and claimed the deduction for state income taxes in 2017?