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tristan-barr
New Member

Does a tax refund count as income?

 
1 Best answer

Accepted Solutions
DoninGA
Level 15

Does a tax refund count as income?

A federal tax refund is not entered on a federal tax return so it is not income.  A state tax refund can be considered income on a federal tax return if you itemized deductions in the year of the tax refund.

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3 Replies
DoninGA
Level 15

Does a tax refund count as income?

A federal tax refund is not entered on a federal tax return so it is not income.  A state tax refund can be considered income on a federal tax return if you itemized deductions in the year of the tax refund.

SweetieJean
Level 15

Does a tax refund count as income?

Some state tax returns count a Federal refund as income.
And a refund may be counted for other purposes, such as some govt benefits.
Anonymous
Not applicable

Does a tax refund count as income?

whether a state income tax refund is taxable is quite complicated.  first you must have itemized and deducted state income taxes for that year.  if you took a deduction for sales tax instead, it isn't taxable.   if you paid alternative minimum tax some or all of the refund may not be taxable.  if you paid some of the taxes after 12/31 of the tax year, part may  taxable and part non-taxable.   if you paid and deducted say $2,000 in state income taxes, got a refund of $500 but your sales tax deduction would have been $1,800, only $200 would be taxable.  there are even more complicated   situations 

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