2007-02-14 17:16:43 · 5 answers · asked by lina 1 in Business & Finance ➔ Taxes ➔ United States
If you itemized last year and deducted state income tax, then yes you do. Otherwise, no.
2007-02-14 17:44:12 · answer #1 · answered by Judy 7 · 1⤊ 0⤋
if you itemized your deductions on last year's return and deducted your state taxes paid, then you have to report the state tax refund you received as income. the reasoning behind this is that you received a tax benefit from deducting your state taxes paid, so you need to pick up the income. the refund would be reported on line 10 of Form 1040.
2007-02-15 01:23:33 · answer #2 · answered by tma 6 · 0⤊ 1⤋
If you did not itemize your deductions on your Federal tax return for the same year that the state or local tax refund applies to, do not report any of the refund as income.
More info:
http://www.irs.gov/faqs/faq-kw182.html
2007-02-15 01:20:56 · answer #3 · answered by Anonymous · 1⤊ 0⤋
If you used the "standard deduction" or if your itemized deductions were limited tot he extent that you didn't get any benefit from the state taxes (as a deduction) - No. Otherwise, it is taxable income.
2007-02-15 01:22:33 · answer #4 · answered by Dizney 5 · 0⤊ 0⤋
ummmm refund......that means they gave you money....... which means either you didnt owe it or they didnt want it, either way, i have never claimed refunds on my taxes.
another point of view is you dont have to claim anything that is not subject to taxes, and refunds are not subject to taxes......
2007-02-15 01:26:09 · answer #5 · answered by Jere_Harless 2 · 0⤊ 4⤋