Personal Finance

I am a Canadian/U.S. Expatriate Tax Expert. Any questions?

  • Last Updated:
  • Feb 12th, 2019 4:53 pm
Newbie
Oct 7, 2018
56 posts
14 upvotes
ro_otbear wrote:
Feb 12th, 2019 4:16 pm
On your 2017 US tax return, did you claim itemized deductions or standard deductions? If you claimed standard deductions, the state tax refund is not considered income for US federal tax purposes in 2018. However, if you itemized deductions, it does get quite complicated. The short answer is "maybe" if you claimed itemized in 2017. You will need to file out this assessment on the IRS website to see if the state income tax is considered taxable income in 2018.

You can refer to the IRS website here: https://taxmap.irs.gov/taxmap/instr/i10 ... nk10002814
On the 1040NR of my 2017 return for Schedule A, I only have box 1 filled out. There are no other items filled out there. I had an account do my previous years due to living in canada and getting paid on the us payroll (w2)

On my 540NR it does not have mention of itemized deductions.
[OP]
Newbie
Aug 10, 2008
53 posts
16 upvotes
Toronto
pachimari04 wrote:
Feb 12th, 2019 4:24 pm
On the 1040NR of my 2017 return for Schedule A, I only have box 1 filled out. There are no other items filled out there. I had an account do my previous years due to living in canada and getting paid on the us payroll (w2)

On my 540NR it does not have mention of itemized deductions.
Gotcha - in that case you didn't claim any state taxes paid in the prior year as an itemized deduction. This means the 1099-G state tax refund you received in 2018 is not taxable and therefore, you don't need to report anything for 2018.
Newbie
Oct 7, 2018
56 posts
14 upvotes
ro_otbear wrote:
Feb 12th, 2019 4:40 pm
Gotcha - in that case you didn't claim any state taxes paid in the prior year as an itemized deduction. This means the 1099-G state tax refund you received in 2018 is not taxable and therefore, you don't need to report anything for 2018.
Awesome, thanks a lot for the information!

Top