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Do you have to claim your 2023 state refund on your 2024 tax return if you itemized your deductions. Turbo tax isn’t doing this currently.

 
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2 Replies
SharonD007
Employee Tax Expert

Do you have to claim your 2023 state refund on your 2024 tax return if you itemized your deductions. Turbo tax isn’t doing this currently.

Yes, enter your state refund and TurboTax will perform the calculations to find out if it's taxable. Your state income tax refund from last year may or may not be taxable. It's only taxable to the extent that the deduction‌ reduced your 2024 federal tax. 

 

Refer to the TurboTax articles: Do I need to report the state or local refund I got last year? Is it taxable? and Is My State Tax Refund Taxable? for more information.

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Do you have to claim your 2023 state refund on your 2024 tax return if you itemized your deductions. Turbo tax isn’t doing this currently.

IS MY 2023 STATE OR LOCAL REFUND TAXABLE?

 

If you used standard deduction for your 2023 tax return, you do not have to enter a state or local tax refund you received in 2024.   If you itemized deductions then your state or local refund that you claimed on the 2023 return----and received in 2024---must be entered as taxable income on your 2024 return.  If you  are not sure if you itemized for 2023, look at your 2023 Form 1040 line 12.   Do you see the standard deduction amount or something else?

 

2023 STANDARD DEDUCTION AMOUNTS

 

SINGLE $13,850  (65 or older/legally blind + $1850) 

 

MARRIED FILING SEPARATELY $13,850  (65 or older/legally blind + $1500)

 

 MARRIED FILING JOINTLY $27,700  (65+/legally blind) )  + $1500 per spouse

 

 HEAD OF HOUSEHOLD  $20,800 (65 or older/blind)  + $1850)

 

If you need to enter a state or local refund Go to Federal>Wages & Income>1099-Misc and Other Common Income>State and Local Tax Refunds on Form 1099-G

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
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