should last years tax refund be included as this years' income?

Question

It's weired and funny to some extent....

Answer 1

If you itemized your deductions last year (tax year 2005) AND took a deduction for State Income Taxes paid, then your STATE tax refund needs to be included in your income for your FEDERAL return this year.

If you did not itemize or did but didn't take a deduction for state income taxes paid they you do NOT include the state refund in your gross income.

Any FEDERAL refund is NEVER taxable on your Federal return (but may be on your state return if your state allows a deduction for Federal income taxes paid.)

Answer 2

No federal refund can ever count number as earnings. State refunds will be earnings yet only below particular circumstances. in case you itemize deductions and also you declare state taxes as a deductible rate, a refund of a few of those expenses might want to be further lower back into earnings right here twelve months.

Answer 3

Only the state refund it you itemized last year on your federal return.

Answer 4

Not if you're talking about your federal refund.

If you itemized last year and deducted state or local income taxes, then got a state or local refund, you would add that refund amount as income this year, since you excluded it last year from being taxed but didn't really end up paying it since you got it refunded.

Answer 5

No

Answer 6

no