Taxes on State and Local Refunds in 2018

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Hef
Posts: 10
Joined: Sun Oct 25, 2015 8:04 am

Taxes on State and Local Refunds in 2018

Post by Hef » Wed Oct 09, 2019 2:34 pm

I was subject to AMT in 2017 and therefore couldn’t deduct my state and local income taxes. Am I still required to pay income tax on the state income tax refund I received in 2018?

HomeStretch
Posts: 2476
Joined: Thu Dec 27, 2018 3:06 pm

Re: Taxes on State and Local Refunds in 2018

Post by HomeStretch » Wed Oct 09, 2019 2:36 pm

No. If the state income taxes were not deducted on your federal return then the state refund is not taxable income.

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