Reply To: 1040 Schedule 1 and State Income Tax Refund

Home Fairmark Forum Other Tax Topics 1040 Schedule 1 and State Income Tax Refund Reply To: 1040 Schedule 1 and State Income Tax Refund

#74171
Kaye Thomas
Moderator

No! Your state income tax refund is taxed on your federal return only to the extent you received a benefit from claiming state tax as an itemized deduction. You should receive Form 1099-G indicating the state has reported this refund to the IRS, but IRS will be aware that you didn’t itemize and therefore don’t have to report the refund as income.