On my 1040 for 2025, my New York State refund for 2024 is not listed on my 2025 taxes?

[Sunshine 58]

Did something change from 2024 to 2025, my NYS refund in 2025 is not being listed as income.  When I did my 2024 taxes my NYS refund showed up.  

On schedule 1 line 10 for 2024 my refund is listed that I  received for 2023.  On schedule 1 line 10 for 2025 my 2024 state refund is not listed?  

[BillM223]

Did you itemize deductions in 2024? If you did not, then your 2024 refund is not taxable in 2025.

Same questions adjusted for 2023 - did you itemize deductions in 2023? If so, then your 2023 refund would be taxable (added to income) for 2024.

The logic is that if you did not itemize deductions in a given year, then the tax for that year was not used to reduce your tax. And, if this is the case, it is not taxable in the year after. It's a little more complicated than this, but see if this makes sense to you.

[Sunshine 58]

I itemized in 2023,  2024 and will in 2025

[Sunshine 58]

Still hoping for an explanation or did I miss something when filling out my information.

[DavidD66 · Accepted solution]

State tax refunds are not always taxable when you itemize your deductions.  If you itemize your deductions on your federal income tax return and receive a state tax refund you must include that refund in your income, but only if you deducted the state tax paid. Because of the $10,000 SALT limit for itemized deductions (state income and property taxes) some taxpayers who itemize are not able to deduct all of the state taxes they paid and do not have to include their state tax refund in income.

TurboTax does a calculation based on the prior year's itemized deductions to determine whether or not your state refund is taxable.  If it is, it is included in your income.  If it is not taxable, it won't be included.