If State Refund taxable for Non-resident Alien (form 1040 NR)

[workhard2022]

(1) If a taxpayer is a Non-resident Alien and he filed form 1040 NR in 2021 and he got a $400 state refund. if he still files form 1040NR in 2022, does this $400 taxable on his 2022 tax return?

(2) If a taxpayer is a Non-resident Alien and he filed form 1040 NR in 2021 and he got a $400 state refund. If he became a tax resident in 2022 and filed form 1040, does this $400 taxable on his 2022 tax return?

Thank you for the help!

[sjrcpa]

Did he receive a federal tax benefit from paying the $400 state tax?

[workhard2022]

I guess the answer is No.    if he adds this $400 state refund to his 2022 income on the individual tax return, he will need to pay some extra taxes.  Maybe I misunderstood your question.

[BobKamman]

Did he itemize deductions on his 2021 return?  Did the deduction for state income tax make any difference in tax he owed?

[George4Tacks]

https://www.google.com/search?q=when+is+state+tax+refund+taxable

[sjrcpa]

Also, the answer is the same whether client files 1040 or 1040NR for 2022.

[workhard2022]

He filed form 1040 NR and for that NR form, there is no standard deduction, only itemized deduction. Thank you for the help