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Level 2
posted Mar 1, 2026 5:38:58 PM

When to declare refund

I just amended our 2024 return and will get a refund.  Since it will be received in 2026 is it declared in 2026 return or the 2025 one?  I'm not sure how to use the amended return in doing the 2025 return,.

0 3 182
3 Replies
Employee Tax Expert
Mar 1, 2026 5:44:53 PM

A tax refund is generally not considered taxable income, so you do not need to declare it on your 2026 return unless you itemized deductions on your 2024 return and that refund represents a recovery of state taxes that previously lowered your federal tax bill. Note- many taxpayers were limited to $10,000 in state and local taxes in 2024, yet had much higher income tax expenses.  If that applies to you, you may not have received a benefit of the tax this refund is attributable to.

 

If you did itemize deductions on your 2024 return and received a benefit of the state tax deduction, you must report the state refund as taxable income on your 2026 return because that is the year you will actually receive the funds.

Level 15
Mar 1, 2026 5:45:51 PM

Do you mean a federal refund?   You do not enter anything about a federal refund on your federal tax return.

Level 2
Mar 1, 2026 9:08:09 PM

We didn't itemize.  So I won't list refund on Federal return but I think Oregon asks for it.  Sounds like that goes on 2026 return.