Frequently Asked Tax Questions And Answers
Keyword: State Taxes
4.4 Interest/Dividends/Other Types of Income: 1099 Information Returns (All Other)
If you did not itemize your deductions on your Federal tax return for the same year that the state or local tax refund applies to, do not report any of the refund as income.
If you received a refund of state or local income taxes this year that you took an itemized deduction for in an earlier year, you may have to include all or part of the refund as income on your tax return. Report your taxable State or Local Refunds on Form 1040 (PDF). You cannot use Form 1040A (PDF) or Form 1040EZ (PDF). Refer to Tax Topic 405, Refund of State and Local Taxes, and Publication 525, Taxable and Nontaxable Income, for further information.
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Whether you are entitled to an additional state tax refund depends on the nature of the change which was made to your federal return. For example, if on your federal tax return, you used the wrong line on the tax tables to figure your tax, this may not have an impact on your state tax return. However, if the change was made to the amount of your taxable income on your federal return, it may have an impact on your state tax return. Contact your state tax office for additional information. It is helpful to have a copy of your tax returns (federal and state) and a copy of the IRS notice when you call.
To access the state you need to direct your question to, please go to our Alphabetical State Index.
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