State tax refunds
Sometimes taxable
Is A state tax refund Taxable?
Short answer: Only if you itemized and deducted state income tax last year; if you took the standard deduction, the refund isn't taxable.
You'll get a 1099-G either way.
Records to keep: Keep receipts, statements (1098, 1098-T, 1099, W-2G), and a note of what each cost was for. Compare itemizing to the 2026 standard deduction before you claim.
BW-B23-01624
medium risk
State tax refunds
Sometimes taxable
Individuals / Personal Taxes
Office & Workspace
Personal Tax Deductions
Only if you itemized and deducted state income tax last year; if you took the standard deduction, the refund isn't taxable.
BizWriteOffs provides educational information only and is not tax, legal, or accounting advice. Deductibility depends on your specific facts and records. Consult a qualified tax professional.
Business justification
Only if you itemized and deducted state income tax last year; if you took the standard deduction, the refund isn't taxable. You'll get a 1099-G either way.
Category
- Personal Tax Deductions
personal deduction
search demand 2026 b23
filing
withholding