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Change of status from NR in 2015 to resident in 2016. Is my state refund taxable?

Forum|Forum|7 years ago
June 4, 2019
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I filed a 1040NR last year, but this year have to file as a resident with a 1040. I got a state refund last year, and a 1099-G, because as an NR you can only itemize deductions. I'm wondering if this refund is now taxable this year. On the Turbo Tax site, it's asking me what my 2015 Sch A line 5a and 5b says but the Sch A for the 1040NR is different and does not have a 5a/5b.

My question is, is this refund taxable?

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Best answer by JohnR1

You only need to report your state income tax refund from 2015 received in 2016 on your federal return if you had claimed an itemized deduction for the state taxes paid on Line 1 of your 2015 Form 1040NR, Schedule A.

If you did claim the itemized deduction for state taxes paid on Schedule A Line 1 your prior-year Form 1040NR, then you would need to report your state income tax refund on Line 10 of your 2016 Form 1040.

J

JohnR1Answer

Employee

You only need to report your state income tax refund from 2015 received in 2016 on your federal return if you had claimed an itemized deduction for the state taxes paid on Line 1 of your 2015 Form 1040NR, Schedule A.

If you did claim the itemized deduction for state taxes paid on Schedule A Line 1 your prior-year Form 1040NR, then you would need to report your state income tax refund on Line 10 of your 2016 Form 1040.