On your 1040 (Federal Tax return) line 12, you are allowed to use the Standard Deduction or Itemize Deductions.
The Standard deduction is a set amount each year based on your filing status. It is subtracted from your income before the tax is computed.
Itemized deductions are reported when a Taxpayer wants to list certain expenses that are "deducted" from income rather than taking the Standard amount. These deductions are listed on Schedule A.
It is most advantageous to take the deduction that is more than the other since it is subtracted from the amount of income you need to claim.
Most people use the Standard Deduction since it has been increased over the years and is easy to calculate.
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Are you entering a 1099G state refund from last year for your 2023 state return?
A State Tax Refund is taxable if you itemized deductions on that prior year's federal return and took a deduction for state income taxes instead of the sale tax. You got a deduction benefit for it so now you have to include it as income. If you took the standard deduction it is not taxable and you don't need to report it.
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