State and Local Tax Refunds

Forum|Forum|1 year ago
February 14, 2025
1 reply
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My actual refund from my state (Michigan) for 2023 matches the amount on my 2023 Turbo Tax return; however, when doing my 2024 Federal tax return, Turbo Tax only pulled forward a smaller amount (about half of my actual return). Is there a reason that I would not have to report the actual amount of my state refund for 2023 on my 2024 Federal return?

AmyC

Employee

Yes, if you itemized last year, your state and local taxes were limited to $10,000.

If you deducted the full refund to reach the $10,000 mark then it is all taxable.
If it wasn't used at all to reach the $10,000, then none of it is taxable.
You must have been near the limit so that part of yours is taxable.

If you took the standard deduction, none of it would be taxable.

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