Does state refund impact current year income?

Forum|Forum|3 years ago
April 18, 2023
3 replies
19 views

does the total state refund on 1099-G get added to AGI?

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DianeW777

Level 15

It depends. If you used itemized deductions in 2021, then you should enter your state tax refund to see if any of it is taxable. If you did not itemize deductions you do not have to enter it at all because none of it was used to reduce your income last year.

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jpbfine

Level 2

Your previous year refund counts as income this year.

BrittanyS

Level 12

Yes, the previous years income can count as income in the current tax season, However, as DianeW777 stated, it is included as income if you itemized your prior years return. You do not count the refund as income if you claimed the standard deduction.

@jpbfine

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