Skip to main content
February 28, 2025
Question

I itemized in 2023 deducting st taxes on Sch A. Yet as i do taxes this year, TT keeps saying my state refund is NOT taxable even though i check the box saying i itemized?

  • February 28, 2025
  • 2 replies
  • 0 views
i have read the 1040 instructions repeatedly. Whys is TT saying my state refund is NOT taxable? Im afraid to go along with this and get audited &have to pay more later

    2 replies

    February 28, 2025

    IS MY 2023 STATE OR LOCAL REFUND TAXABLE?

     

    If you used standard deduction for your 2023 tax return, you do not have to enter a state or local tax refund you received in 2024.   If you itemized deductions then your state or local refund that you claimed on the 2023 return----and received in 2024---must be entered as taxable income on your 2024 return.  If you  are not sure if you itemized for 2023, look at your 2023 Form 1040 line 12.   Do you see the standard deduction amount or something else?

     

    2023 STANDARD DEDUCTION AMOUNTS

     

    SINGLE $13,850  (65 or older/legally blind + $1850) 

     

    MARRIED FILING SEPARATELY $13,850  (65 or older/legally blind + $1500)

     

     MARRIED FILING JOINTLY $27,700  (65+/legally blind) )  + $1500 per spouse

     

     HEAD OF HOUSEHOLD  $20,800 (65 or older/blind)  + $1850)

     

    If you need to enter a state or local refund Go to Federal>Wages & Income>1099-Misc and Other Common Income>State and Local Tax Refunds on Form 1099-G

    **Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
    SharonD007
    February 28, 2025

    Did you deduct sales taxes instead of state and local taxes in 2024? If you deducted sales tax instead of state and local tax, your last year's state refund isn't taxable. Also, when your last year's state refund is taxable, the amount that is taxable depends on how much of the deduction you received affected your tax liability.

     

    Refer to the TurboTax articles: Do I need to report the state or local refund I got last year? Is it taxable? and Is My State Tax Refund Taxable? for more information.

    **Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"