Is my state refund taxable income if I itemized my federal tax return?
It is possible that your state refund is taxable income. You may need to claim all or part of it if:
- You received a state or local income tax refund, credit, or offset.
- You itemized deductions
You had the option to choose to deduct either state and local income taxes or general sales taxes. If you chose general sales taxes, none of your refund is taxable.
If you chose state and local income taxes, your state refund is taxable. However, it’s only taxable to the extent that it’s more than the refund you would have received by choosing the larger refund from these:
- Standard deduction
- General sales tax
Related Resources
Looking for more information about your Ohio refund? Find out details on how to check your refund status, who to contact, and more from H&R Block.
Learn how claiming children on your taxes will impact your federal tax return with advice from the tax experts at H&R Block.
Learn more about the requirements for claiming full time college students on your taxes with advice from the tax experts at H&R Block.
Can you claim your daughter's significant other and his child as dependents? Find your tax answers from H&R Block.