State Tax Refund - Received in Current Year for Last Year's State Return
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If you itemized deductions on your federal return in the 2014 tax year, then a state refund that you received in 2015 may be taxable. You would enter the amount in the State Tax Refund section of TaxAct®. If you did not itemize on your 2014 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 tab. On smaller devices, click the menu icon in the upper left-hand corner, then select Federal
  2. Click State Income Tax Refund
  3. The program will proceed with the interview questions for you to enter or review the appropriate information