If I mail a 2024 state income tax tax amended return in October 2025, and that calls for a refund, but the return is not processed until 2026, does the refund go on 2025 taxes? I would tend to guess yes. I did not find that.
Is there a general rule on this topic?
I understand that state tax refunds are income if you itemized the previous year.
One more question, but more hypothetical this time: I mail the amended return Dec 30, and it gets postmarked in 2025, it arrives Jan 2, is that refund on 2025 taxes?
Thanks.
In state income tax deductions on federal, what date matters?
byu/Beet_slice intax
Posted by Beet_slice
1 Comment
The vast majority of people use the cash basis of accounting, meaning you report income when you receive it, and report expenses when you pay them. So, a state tax refund received during 2026 will be reported on your 2026 return, even if it’s resulting from an amendment that you filed in 2025.
Note that state tax refunds are only taxable to the extent that you used the state taxes you paid as an itemized deduction.