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posted Mar 30, 2023 6:04:11 PM

I received CA state tax refund on 2021 return, in 2023. Should I report this refund this year on 2022 return?

I filed 2021 tax in 2023 and received CA state tax refund in 2023. Should I report this  refund on 2022 return this year? Or, should I wait until next year because I received it in 2023?

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1 Replies
Level 2
Mar 30, 2023 6:09:01 PM

Since it was received in 2023, it would be shown - IF it was taxable - on your 2023 return.  Individuals are "cash basis" taxpayers. A state tax refund is taxable only if you received a tax benefit from deducting it.  Did you itemize your deductions in 2021? Or did you claim the standard deduction?  If you itemized, it would generally be taxable.  If you claimed the standard deduction, it would not be taxable.