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The Water Cooler
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Anybody else get a weird state tax rejection?
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<blockquote data-quote="Fatboy Joe" data-source="post: 2084269" data-attributes="member: 13212"><p>Let me help you out with this. If you itemize your deduction you get to deduct from your federal income the amount you paid to Oklahoma for state income taxes. The IRS does not know if you got a refund of an amount you got to deduct. So the next year you get to pick it up as income. If you didn't itemize, you didn't deduct state taxes for federal purposes, therefore your state refund is not taxable. it isn't double taxation.</p></blockquote><p></p>
[QUOTE="Fatboy Joe, post: 2084269, member: 13212"] Let me help you out with this. If you itemize your deduction you get to deduct from your federal income the amount you paid to Oklahoma for state income taxes. The IRS does not know if you got a refund of an amount you got to deduct. So the next year you get to pick it up as income. If you didn't itemize, you didn't deduct state taxes for federal purposes, therefore your state refund is not taxable. it isn't double taxation. [/QUOTE]
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Anybody else get a weird state tax rejection?
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