Robert received a tax refund in 2015 from his state, which he deducted on his prior year's return as an itemized deduction. He must report the refund in income in 2015, subject to certain computations to determine the amount that is taxable.

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Tax refunds are generally considered taxable income if the taxpayer deducted the amount on their prior year's tax return as an itemized deduction. However, the amount of the refund that is taxable may be reduced or eliminated depending on various factors such as the taxpayer's income level and the amount of state and local taxes they paid during the year.

Robert Received a Tax Refund in 2015 from His State