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<< I recently received a refund from my state income taxes. I realize that if I had itemized my deductions for 99, then I would have deducted my state income tax. Therefore, then, my state refund would need to be declared as income for 2000. I understand this point.

The thing that I am not sure is that if I used the standard deduction for my 99 taxes, do I still need to claim my state refund as income for 2000? Does the Fed govt. assume that state income tax is included in the standard deduction? >>

It would have been helpful for you to include the year the refund is for, but I'll assume it's 1999. In that case, if you didn't itemize deductions on your 1999 Federal return, the refund is not taxable. If the refund was for some other year, what matters is whether you itemized on your Federal return for THAT year.

Phil Marti
Tax Preparer
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