If you itemized deductions on your federal return in the 2013 tax year, then a state refund that you received in 2014 may be taxable. You would enter the amount in the State Tax Refund section of TaxACT. If you did not itemize on your 2013 federal return, then the state refund would not be taxable to you.

To enter the state tax refund:

1. From within your TaxACT return (Online or Desktop) click on the Federal Q&A tab
2. Click State Income Tax Refund
3. The program will proceed with the interview questions for you to enter or review the appropriate information