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
What's the difference between allowances and dependent exemptions? Get tax answers from H&R Block.
Learn more about tax filing requirements and tax filing information with the experts at H&R Block.
If you were pregnant most of the year, can you claim you baby or newborn child on your taxes? Get tax answers from the experts at H&R Block.
When you make cash donations to a qualified charitable organization, you may be able to take a tax deduction. Learn how at H&R Block.