Are 2008 state tax refunds counted as income for 2009?

ANSWER

The BIDaWIZ Team's Answer:

The 2008 state tax refund is included on your

2009 form 1040, as taxable income, if you claimed

itemized deductions, via a schedule A, on your 2008 tax

return. Conversely, if you only claimed the standard deduction

on your 2008 form 1040, than the 2008 state tax refund

is not included, as income, on your 2009 form 1040.