If one's state tax refund was automatically sent to the IRS for prior years federal past due taxes, is the refund still taxable in the current year?

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If one's state tax refund was automatically sent to the IRS for prior years federal past due taxes, is the refund still taxable in the current year?

Yes, it is treated the same as if you received a check for that amount. If you itemized in the year the refund is for, and deducted state tax, your refund is taxable.

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If one's state tax refund was automatically sent to the IRS for prior years federal past due taxes, is the refund still taxable in the current year?

Yes, it is treated the same as if you received a check for that amount. If you itemized in the year the refund is for, and deducted state tax, your refund is taxable.

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