Skip to main content
March 10, 2024
Solved

When filing married but separately , who adds the state return refund to their income?

  • March 10, 2024
  • 1 reply
  • 0 views
No text available
Best answer by VolvoGirl

Did you file Joint last year and got a state refund?  You split it 50/50.

 

But you may not need to enter it at all.  A State Tax Refund is taxable if you itemized deductions on that prior year's federal return and took a deduction for state income taxes instead of the sales tax. You got a deduction benefit for it so now you have to include it as income. If you took the Standard Deduction it is not taxable and you don't need to report it. Check your 1040 line 12 to see which deduction you took. 

1 reply

VolvoGirl
VolvoGirlAnswer
Employee
March 10, 2024

Did you file Joint last year and got a state refund?  You split it 50/50.

 

But you may not need to enter it at all.  A State Tax Refund is taxable if you itemized deductions on that prior year's federal return and took a deduction for state income taxes instead of the sales tax. You got a deduction benefit for it so now you have to include it as income. If you took the Standard Deduction it is not taxable and you don't need to report it. Check your 1040 line 12 to see which deduction you took.