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Other Income - Refund of Deducted Property Tax

me-carney
Level 3

Hi,

I think that I know the answer but want to ask for certainty.

If someone gets a refund of their previous year property tax, typically this would be income in the current year if the property tax was deducted in that previous year.

In the previous year there were no itemized deductions as the increased standard deduction was higher so the standard deduction was used.

Is the refunded property tax deduction income or not?

Thanks.

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2 Replies 2
sjrcpa
Level 15

It is income, but it is not taxable income.


ex-AllStar
BobKamman
Level 14

No, it is not income, any more than a grocery coupon is income, and it is not taxable.