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March 7, 2024
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Do I need to report last year's state tax refund if I donated it?

  • March 7, 2024
  • 1 reply
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On last year's return I opted to donate all of my refund to charity. Do I still have to report that that refund on this year's tax form? Will it be counted as income?
Best answer by JulieS

Yes, the state refund is counted as received by you, even if you choose to apply it the next year, or donate it to charity. 

 

If you donate it to charity, you can take a deduction for the donation. 

 

If you deducted your state income taxes as itemized deductions and later got a refund of part of the amount you deducted, that is taxable income in the year that you get the refund. Learn more about that. 

If you took the standard deduction, the refunds aren't taxable and don't have to be entered. 

If you need to figure the taxable amount, this is how to do that in TurboTax:

 

  1. Open your TurboTax account.
  2. Select the down arrow to the right of Income & Expenses.
  3. Select Review/ Edit.
  4. Select Start or Revisit to the right of Refunds Received for State/Local Tax Returns.
  5. Answer the first question Yes.
  6. Enter the details about your refund, or the information from 1099-G here.
     

1 reply

JulieSAnswer
March 7, 2024

Yes, the state refund is counted as received by you, even if you choose to apply it the next year, or donate it to charity. 

 

If you donate it to charity, you can take a deduction for the donation. 

 

If you deducted your state income taxes as itemized deductions and later got a refund of part of the amount you deducted, that is taxable income in the year that you get the refund. Learn more about that. 

If you took the standard deduction, the refunds aren't taxable and don't have to be entered. 

If you need to figure the taxable amount, this is how to do that in TurboTax:

 

  1. Open your TurboTax account.
  2. Select the down arrow to the right of Income & Expenses.
  3. Select Review/ Edit.
  4. Select Start or Revisit to the right of Refunds Received for State/Local Tax Returns.
  5. Answer the first question Yes.
  6. Enter the details about your refund, or the information from 1099-G here.
     
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