I received a Form 1099-G, for my state tax refund. Do I have to include this amount as income on my return?

If you did not itemize your deductions on your Federal tax return for the same year as the state or local tax refund applies to, do not report any of the refund as income.

If you received a refund of state or local income taxes this year that you took an itemized deduction for in an earlier year, you may have to include all or part of the refund as income on your tax return. Report your taxable State or Local Refunds on Form 1040. You cannot use Form 1040A or Form 1040EZ (PDF). Refer to Tax Topic 405, Refund of State and Local Taxes , and Publication 525 , Taxable and Nontaxable Income , for further information.

References:

• Publication 525, Taxable and Nontaxable Income
• Tax Topic 405, Refund of State and Local Taxes
• Form 1040 Instructions