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March 17, 2025
Question

Is my Alabama State Income tax refund considered income if I took the standard deduction in the previous tax year?

  • March 17, 2025
  • 1 reply
  • 0 views
For Tax year 2023, I used the standard deduction on my federal return, so I don't think I need to count the 2023 refund as income, but Turbo Tax really wants me to include this amount. For Tax year year 2022, I did take the itemized deduction on my federal return.

1 reply

DoninGA
March 17, 2025

If you did not itemize your deductions on the 2023 federal tax return, then the 2023 state tax refund is not reported on the 2024 federal tax return.

March 17, 2025

Thanks for the quick response, DoninGA!!

One more question if you don't mind.

  Should I still enter the state income tax refund 1099G info in Turbo Tax, and expect that Turbo Tax will not count this as income, or should I just not enter any of the 1099G information? 

 

Thanks again,

Tom 

DoninGA
March 17, 2025

@tomfancher Just do not enter the state tax refund