Question

I am trying to do 2018 tax and i saw a screen that said i will have to pay tax on 2017 refund?

Forum|Forum|6 years ago
October 13, 2019
2 replies
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TurboTax Self Employed Online

Employee

Federal tax refunds for a prior tax year are not entered on a federal tax return nor are federal tax refunds taxable income on a federal tax return.

If you received a State/Local tax refund in 2018 for a prior tax year, the State/Local tax refund may be taxable if you itemized your deductions in the prior tax year.

Critter

Employee

On the federal return ... if you itemized on the 2017 return then the state refund is taxable to the feds ... and in some state returns the 2017 federal refund is taxable to the state.