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February 2, 2020
Question

In CA, don't I have to claim my prior year's CA tax refund?

  • February 2, 2020
  • 1 reply
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1 reply

VolvoGirl
Employee
February 2, 2020

Not on your state return but maybe on federal.  Depends, 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 sale tax.  You got a deduction benefit for it so now you have to include it as income. If you took the standard deduction or filed a 1040EZ or 1040A it is not taxable and you don't need to report it.

 

If you filed the Free Edition last year you took the Standard Deduction and the state tax refund is not taxable and you don't have to enter it.