Tax FAQ Series – What Amount Of My State Refund Is Taxable?
The state refund is only taxable to the extent that it exceeded the sales tax deduction. This carry forward amount is calculated on what is called the “Refunds Worksheet” that can be found in your return.
Have more questions? Call (480) 888-7111 to schedule your free consultation today!
Have a question you would like featured on our Tax FAQ Series? Submit your question to firstname.lastname@example.org