A flashback is a fully formed scene set in an earlier time. So it should be typeset like any other scene. In fact, in the flashback, you would not set the dialogue in italics. You'd put it in quotation marks, just as in any other scene.

How do you format a flashback in writing?

So if you need a flashback, it's simple: Write a sentence or two of transition, then do a scene break, then write the flashback, and then do another scene break. If you need another short transition to get back into the present, write one.

Should past dialogue be italicized?

Direct Internal Dialogue vs.

It's most common for direct thoughts to be set in italics. When internal dialogue is written in the past tense, on the other hand, it is known as “indirect internal dialogue.” It's more common for indirect internal dialogue to be presented without the use of italics.