In 2012 my employer withheld taxes to the wrong state. They paid withholding to Missouri instead of Illinois. When I filed in 2013, I filed my Illinois State Tax Return and paid all state taxes that were due. I then filed a Missouri State Tax Return return and received a full refund of all the taxes that were erroneously paid to Missouri. My question is, do I have to claim the state tax refund from Missouri as taxable income on my 2013 federal return?
