#We are currently experiencing unusually high volumes of support requests. Response times may be delayed. ×

Am I being double taxed?

While the state refund tax sounds unusual, it’s not a double taxation. Let’s say you itemized your state income taxes on your 2016 tax return but received a refund for the year in 2017 (after you filed your 2016 return).

Because you received a refund, you technically overstated your state income tax deduction on your federal return, and you paid less in federal taxes on your 2016 than you should have. As a result, your state refund could now be taxable.

That said, if you took a standard deduction last year or itemized sales tax instead of state income tax, your state income tax refund isn’t taxable.

Still have questions? Contact member support

Continue your tax filing

Was this article helpful?