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March 22, 2021
Question

In my PA taxes, I credited my 2019 refund to my 2020 state taxes. Do I have to count that as income on my 2020 Federal tax return?

  • March 22, 2021
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1 reply

March 22, 2021

Yes, you do need to enter the amount of your 2019 state tax refund as part of your Federal return.  It will only be considered to be taxable if you itemized deductions on your Federal return for 2019. 

 

The fact that you applied it to your 2020 state taxes and did not actually receive the money is irrelevant.  

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