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June 1, 2019
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You had taxable state or local income tax refunds, and that's just one of the reasons the IRS requires you to file Form 1040. ???

  • June 1, 2019
  • 2 replies
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I am not clear on why I have taxable state/local income. It seems as though 2015 is some how why?
Best answer by DawnC0

It may have something to do with a state income tax refund you received in 2017 for tax year 2016.  If you did receive a state tax refund, and you did not itemize, then the refund would not be taxable to you.  If however, you did itemize and benefited from a tax deduction last year, some or all of your state tax refund would be taxable.

2 replies

June 1, 2019
Why do I need to upgrade?
You had taxable state or local income tax refunds, and that's just one of the reasons the IRS requires you to file Form 1040.
DawnC0
DawnC0Answer
Employee
June 1, 2019

It may have something to do with a state income tax refund you received in 2017 for tax year 2016.  If you did receive a state tax refund, and you did not itemize, then the refund would not be taxable to you.  If however, you did itemize and benefited from a tax deduction last year, some or all of your state tax refund would be taxable.