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frank8421
New Member

I pay quarterly to state and IRS, why do I have to claim refunded state monies which I paid them.?????

 
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BMcCalpin
Level 13

I pay quarterly to state and IRS, why do I have to claim refunded state monies which I paid them.?????

You MAY have to declare a state income tax refund as income, because you MAY have taken the state income tax paid last year as a deduction on Schedule A on your federal return. 

If you didn't take the state tax paid as a deduction (for example, if you took the Standard Deduction instead of Itemizing), then you won't have to declare the refund as income and it won't be taxed.

Just answer the questions related to the refund, and TurboTax will help you figure it out.

View solution in original post

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BMcCalpin
Level 13

I pay quarterly to state and IRS, why do I have to claim refunded state monies which I paid them.?????

You MAY have to declare a state income tax refund as income, because you MAY have taken the state income tax paid last year as a deduction on Schedule A on your federal return. 

If you didn't take the state tax paid as a deduction (for example, if you took the Standard Deduction instead of Itemizing), then you won't have to declare the refund as income and it won't be taxed.

Just answer the questions related to the refund, and TurboTax will help you figure it out.

View solution in original post

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