Last year for 2018 income tax I filed joint income taxes and got a $1,600 refund from the state of CA. My husband passed away Dec 2018 so that was his last tax return.
This year for 2019 I am filing as single. Please someone tell me if I can report half of the amount ($800) as my income or has to be $1600?
I don’t know about the “half” thing but are you sure it is reportable income? For 2018 tax yr, did you use the standard deduction? If you did, you got no benefit from the increased state tax paid and the refund is not taxable. Or, if you itemized but used sales tax instead of CA income tax, the same applies.
Just trying to see if you can get the taxable amount lower……….even tho you filed w/itemized deduction using state income tax, it is possible that filing w/itemized deduction using sales tax instead might not be that much worse.
Use this calculator to figure the sales tax for your income bracket (10K wide). https://apps.irs.gov/app/stdc/stdc.html
For income, use your AGI and add all untaxed income (untaxed SS/untaxed pensions/capital loss/etc).
The basic idea is to find out how much you benefited from the itemized state income tax. Eg if your state income tax itemized was 1600 but your state sales tax would have been 1500, TT would have selected state income tax because it gave you a higher deduction. However if the benefit over sales tax was only 100, then your benefit was only 100 and only 100 was taxable.