Taxable State Refund

[Brian EA]

Taxpayer is filing 2008 and 2009 tax returns at the same time. She itemizes on the federal and has a refund from the state for 2008. That refund would be taxable income (supposedly) in 2009. Since she is having 2008 done in 2010 wouldn't that income be taxable in 2010?
Thanks for your response. ( A little fogged up brain)

brian

[Lion]

Cash Basis Taxpayer

Cash basis taxpayer reports income when constructively received, so state refunds received in 2010 no matter for what year are potentially taxable in 2010.