Local And State Tax Refund Taxable
You might receive Form 1099-G reporting a state or local income tax refund. If so, that doesn’t mean your refund is automatically taxable.
If you claimed the state or local income taxes you paid as an itemized deduction on last year’s return, usually your state or local refund is taxable. However, other circumstances might reduce your tax. The amount of your refund that’s taxable can be reduced by the difference between these:
- Itemized deductions you claimed last year
- The standard deduction for your filing status
To learn more, see “Other Income” in Publication 17: Your Federal Income Tax at www.irs.gov, and the State and Local Income Taxes tax tip.
Can you file your taxes without a W-2 form? If you are missing your W-2 form, the Tax Institute can help. Learn what to do so you can get your taxes filed before the deadline.
The IRS won't open an audit simply because you file an amended return. But, there are things you should know about filing Form 1040X.
Do you need to call the IRS? Get the IRS phone number and learn what you need to know before calling from the tax experts at H&R Block.
The IRS intends to terminate your installment agreement. Learn more about IRs letter 2975 and how to address it with help from the tax experts at H&R Block.