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IS MY 2024 STATE OR LOCAL REFUND TAXABLE?
If you used standard deduction for your 2024 tax return, you do not have to enter a state or local tax refund you received in 2025. If you itemized deductions then your state or local refund that you claimed on the 2024 return----and received in 2025---must be entered as taxable income on your 2025 return. If you are not sure if you itemized for 2024, look at your 2024 Form 1040 line 12. Do you see the standard deduction amount or something else?
2024 STANDARD DEDUCTION AMOUNTS
SINGLE $14,600 (65 or older/legally blind + $1950)
MARRIED FILING SEPARATELY $14,600 (65 or older/legally blind + $1550)
MARRIED FILING JOINTLY $29,200 (65 or older/legally blind + $1550)
HEAD OF HOUSEHOLD $21,900 (65 or older/legally blind + $1950)
If you need to enter the state or local refund — go to
Federal>Wages & Income>1099-Misc and Other Common Income>State and Local Tax Refunds on Form 1099G
Is it listed as income or is it just showing up in the income summary?
It will be shown on the income summary, but that does not mean it is included in your income.
To double check if it is included, you can go to Income>>Other Common Income>>State and Local Tax Refunds on Form 1099-G.
As you walk through the questions you will be asked Did you take the standard deduction in 2024. Here you will answer No. This will keep the refund from being included in your taxable income.
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