2007-02-10 07:02:40 · 4 answers · asked by CinD 1 in Business & Finance ➔ Taxes ➔ United States
Did you itemize deductions for 2005? If you did, then you must claim the refund as income in 2006. If you did NOT itemize in 2005, you do NOT claim the refund as income in 2006.
2007-02-10 07:06:06 · answer #1 · answered by Bostonian In MO 7 · 1⤊ 1⤋
If you itemized your deductions on your 2005 tax return and received your refund in 2006...all or some of the State tax refunds may taxable. Are you preparing your own tax return for 2006? If so, the online tax preparation websites will walk you through a worksheet that determines how much of the tax refund is taxable, if any or all. If you are preparing taxes through the mail, the worksheet should be in the instruction book for 1040 or 1040A
If you used the standard deduction then it is not taxable income.
2007-02-10 09:01:55 · answer #2 · answered by Super Mom 2 · 0⤊ 0⤋
now no longer in case you moved. evaluate your 2006 return. Did you checklist a 1040? Did you itemize? Did you declare the state earnings taxes? did you get a tax earnings from that deduction? If useful, do the figuring to place the refund gained in 2007 on your 2007 tax return.
2016-11-03 02:17:21 · answer #3 · answered by ? 4 · 0⤊ 0⤋
State tax refunds are only taxable if you Itemize your deductions. If you use the standard deduction you do not need to report it as income.
2007-02-10 07:55:20 · answer #4 · answered by taxlady1975 2 · 0⤊ 0⤋