Do I need to report prior year State Income Tax refund that was withheld and paid out at a later date?

Forum|Forum|2 years ago
January 25, 2024
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Hello,

In 2022, my Arizona state income tax refund for the tax year of 2021 for 240~ dollars was withheld due to an ongoing dispute with the state's Department of Economic Security. After settling the case in court, the judge ruled in my favor and said I was owed the withheld amount. However, they did not send out my check until April of 2023, which I deposited into my account.

Since it is a refund, do I need to report this as any kind of income for that tax year? I also moved to Georgia in 2021 and have lived there since, and the first year I filed dual state income since I worked in both AZ and GA. If I need to report it, would I report as earned in Arizona?

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Best answer by DoninGA

Did you itemize your deductions on the 2022 federal tax return? If not, and you took the Standard Deduction on the 2022 federal tax return, then none of the state tax refunds need to be reported on your federal return.