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    kblogsdon's Avatar
    kblogsdon Posts: 1, Reputation: 1
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    #1

    Apr 13, 2014, 08:08 PM
    Is Prior Year State Tax Refund Taxable
    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?
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
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    #2

    Apr 13, 2014, 08:53 PM
    Yes, if you ITEMIZED your deductions on your 2012 tax return.

    If you itemize for 2013, you claim the Illinois taxes paid on Schedule A as well.
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