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 Summary of Tax Year Form ChangesIowa Department 2022

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so you got a nice state tax refund last year but this year to your great dismay you find that the state tax refund you got last year has become taxable income on your federal return for this year what gives why is the state government sending you money only for the federal government to take some of it away well in this video I'm going to tell you why this can happen and how the taxable portion of your state tax refund is calculated I'm the tax geek back with more of your taxes oversimplified [Music] first of all if you're among the 86% of taxpayers that didn't itemize deductions last year your state tax refund is not taxable that being said anytime you get reimbursed for an expense you deducted in a prior year that reimbursement becomes taxable income in the year you received it this is called a recovery and a taxable state tax refund is one example of such a recovery let's go straight to an example to see how that works meet Steph Steven had st

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