Your state refund appears on line 19 of Form 1040

If you received a state or local income tax refund during the year, the IRS requires you to report it on your federal tax return. On Form 1040, this goes on line 19, labeled "Other income." The amount you enter is whatever your state sent you — the full refund check or direct deposit amount.

This line exists because the IRS treats a refund of taxes you paid in a previous year as income in the year you receive it. It sounds counterintuitive: you paid money to your state, got it back, and now you have to report it as income. But that is how the federal system works.

You will receive a Form 1099-G from your state if your refund was large enough. The threshold varies by state — some states report all refunds, others only those above $10 or $25. Check your state's tax department website or your online account to see whether a 1099-G was issued to you.

Key Takeaways

  • State and local tax refunds go on line 19 of Form 1040, in the "Other income" section.
  • You report the full amount of the refund you received, regardless of how much state tax you originally paid.
  • Your state will send you a Form 1099-G if your refund meets the state's reporting threshold, which varies.
  • If you did not itemize deductions in the year you paid the state tax, you may not owe federal tax on the refund.

When you do not have to report a state refund

There is one important exception: if you took the standard deduction in the year you paid the state tax, you do not report the refund as income. The standard deduction is a flat amount the IRS lets you subtract from your income instead of listing individual deductions. Most people use it.

The reason is that you only get a federal tax benefit from state taxes if you itemized deductions — meaning you listed out your state taxes, mortgage interest, charitable donations, and other expenses instead of taking the standard amount. If you did not itemize, the state tax you paid did not reduce your federal taxes in the first place, so the refund is not income to report.

Check your prior year return to see which method you used. If line 12 on that year's Form 1040 shows the standard deduction amount, you took the standard deduction and do not report the refund. If you see a number on Schedule A (the itemized deductions form), you itemized and do report it.

How to find the refund amount if you lost the check

If you cannot locate your state refund check or do not remember the amount, your state tax department can tell you. Most states let you look this up online through your tax account or by calling their refund hotline. You will need your Social Security number and the year the refund was issued.

Your bank records are another source. If the refund was direct deposited, search your bank statements for deposits from your state during the year. If it was mailed as a check, your cancelled check or bank statement will show the amount and the date it cleared.

If you received a Form 1099-G, that form shows the refund amount in box 2. This is the number to use on line 19.

What happens if you report the refund incorrectly

If you forget to report a state refund that you should have reported, the IRS will likely catch it when they match your return against the Form 1099-G your state filed. They will send you a notice with the corrected amount and any additional tax owed, plus interest.

If you report a refund that you should not have reported because you took the standard deduction, you have overstated your income. You can file an amended return using Form 1040-X to correct this. It is worth doing because it may lower your tax bill or increase your refund.

State refunds versus federal refunds

Do not confuse a state tax refund with a federal tax refund. A federal refund is money the IRS owes you because you overpaid federal income tax during the year. That goes directly back to you and is not reported as income anywhere — it is straightforward a return of your own money.

A state refund is money your state owes you for the same reason. When you receive it, you report it on your federal return because it is income in the year you get it, even though it was a refund of prior-year taxes.

Frequently Asked Questions

Do I report a state refund if I got it in the same year I paid the state tax?

Yes, you report it in the year you received the refund, not the year you paid the tax. If your state refunded you in 2024 for 2023 taxes, it goes on your 2024 return on line 19.

What if I received a refund from two different states?

Add them together and enter the total on line 19. You do not need to break them out by state on Form 1040, though you should keep records showing which state each refund came from in case the IRS asks.

Does a state refund affect my federal refund or tax bill?

Yes, reporting it as income on line 19 increases your total income for the year, which may increase your federal tax or reduce your federal refund. The exact impact depends on your tax bracket and other income.

What if my state refund was less than $10 and I did not get a 1099-G?

You still report it on line 19 if you itemized deductions in the prior year. The 1099-G threshold does not change the reporting requirement — it only determines whether the state sends you a form. You are responsible for reporting the refund regardless.