Last year I received a refund from the IRS in the amount of $1217.
As I'm going through my TurboTax preparation online for the 2010 return and am nearing the end of the form, I do not recall them asking me (under the INCOME SECTION) if I had a refund last year and if so, to declare it.
Because I am a homeowner I think I had to do the TurboTax Deluxe but my forms are really very very simple.
Can someone please help?
Thank you.
Sat Jan 15, 2011 8:51 pm
oldguy Senior Member
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For most of us, the IRS refund is taxable on our State income tax return - but I don't think WA has a state tax? But, no, the refund is not reported on your Federal Return.
Sat Jan 15, 2011 11:29 pm
nemoryer Full Member
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THANK YOU.
THANK YOU VERY MUCH.
Sun Jan 16, 2011 3:59 am
coaster Senior Advisor
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For those folks who have Turbo Tax, and have a state income tax, the Turbo Tax interview will ask about tax refunds.
In Wisconsin, a state refund is taxable on the Federal return (because state income taxes are deductible, so more or less state tax affects Federal taxable income); but a Federal refund isn't taxed by the state, because it had no effect on the previous year's taxable income.
