Taxable refunds

[cooltwins]

State is MN

Is the property tax refund I received in 2005 considered taxable income for line 10 on the 1040?

In 2004, I itemized deductions. Instead of deducting my state income taxes on Schedule A, I deducted General Sales Taxes. Does this mean that my 2004 state income tax refund is not considered taxable income for line 10 on 1040?

[LdiJ]

Originally Posted by cooltwins

State is MN

Is the property tax refund I received in 2005 considered taxable income for line 10 on the 1040?

In 2004, I itemized deductions. Instead of deducting my state income taxes on Schedule A, I deducted General Sales Taxes. Does this mean that my 2004 state income tax refund is not considered taxable income for line 10 on 1040?

Any time you get a refund of a state tax item that you included on your previous schedule A, then its income for the next tax year.

You didn't include your state income tax on your previous schedule A, so a refund from that isn't income.

However, if you included your property tax on your previous schedule A, then a refund from that, is taxable income.