I am getting a fairly large refund this year & need to know if this amount is considered as income on next year's taxes & do I have to pay taxes on it?

[Hal_Al · Accepted solution]

No, your federal refund is not taxable income to you. It is just a return of "after tax" money. 

A state refund MAY be taxable, but only if you had previously deducted that amount on schedule A (itemized deductions) of your federal return.