Many people recieve a 1099-G from the State reflecting last year’s refund. If you did not file a schedule -A- last year just file it with your tax papers for this year as none of it is taxable. If you did file a schedule A some or all of your last year’s Ohio refund can be taxable on your 2018 federal tax return. Many people assume all of it is taxable especially if they went long form last year. A special calculation is required to determine how much is actually taxable. With the high standard deduction on the Federal return many people may go long form but the differential between the 2 may be negligible making only a portion of your Ohio return from last year taxable. Don’t pay taxes you don’t have to. Take a few moments if your software doesn’t handle this to run the numbers or see a tax professional. It just may save you a few bucks.
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