Taxability of state income tax refund

[lbsheets07]

I lived in two states in 2023.  In 2024, I received a 2023 state income tax refund for State A and no refund for State B.  I live in State B and no longer have to file a tax return in State A.  Do I have to list my 2023 State A refund, received in 2024, on my 2024 federal return as 2024 income?

[xmasbaby0]

Your state refund is only taxable if you had itemized deductions on your 2023 federal return.  If you used your standard deduction for 2023, then you do not have to enter a state refund.

[Mike9241]

if your tax deduction on schedule A was limited to $10,000 ($5,000 MFS)

you need to see this webpage since some of the refund might not be taxable due to the limitaion.

if you used Turbotax in 2023 and use  for 2024 it should handle the taxability of the refund properly

https://www.irs.gov/pub/irs-pdf/i1040gi.pdf see page 84

in certain cases you'll need to use iRS PUB 525

https://www.irs.gov/forms-pubs/about-publication-525 

this version is for 2023 so change the years from 2023 to 2024  start page 23) and then the worksheets 2 and 2a