? having to claim last years refund

[LORITHECHICK]

Do you have to claim the previous years refund from the feds & state on your state tax form every year?

Example and this is why I'm asking...here in California we have to claim 2006 refunds as income on our 2007 STATE Tax Return.
I wondered if any other states were like this...
I think it is so unfair to tax and then be taxed again

[mood4amelody]

Yup, every year they ask how much we got for federal refund. One of these days I'll prally get audited tho, because since they take it all for DA's back support and we don't "get back" anything, I always put "0".

[messajarjar]

As far as I know, you only have to claim it as income under certain circumstances. For example, if you use a schedule C, then you are also using the current years' state taxes paid as part of your total deduction calculation, so you have to include your state as income in the following year. I've never used a schedule C, so I never list it as income, nor do I include it in my deduction calculation. Hope this helps. :D

[mood4amelody]

Sounds like it's particular to the state, then. IA stinks. :rolleyes:

[LisaRKR]

:eek: Wow, I have never heard of such a thing. I know that you don't in Ohio or Texas. It doesn't make any sense either. Why would you have to claim money that was refunded to you when it was money that you OVERPAID in the first place????? Are you guys having your taxes done by a CPA or Accountant? Granted, I have no clue in other states, but that just doesn't sound right to me????:confused:

[wbarker]

I don't know - I live in Washington, and we don't have State taxes, just Federal.

Last time we got that silly $300 refund, I misunderstood, and did not claim it on our taxes, I did get a note from the IRS requesting me to pay it back.

I am actually upset about this one. I don't want to receive money I'm going to have to pay back!! Keep it!!!!

[mood4amelody]

:eek: Wow, I have never heard of such a thing. I know that you don't in Ohio or Texas. It doesn't make any sense either. Why would you have to claim money that was refunded to you when it was money that you OVERPAID in the first place????? Are you guys having your taxes done by a CPA or Accountant? Granted, I have no clue in other states, but that just doesn't sound right to me????:confused:

It asks you right on the IA 1040, the 1040A and EZ if you received a federal refund and the amount! Doesn't matter who does the taxes, the question is still there and the numbers are still added into the calculations. :(

[momsangel]

It asks you right on the IA 1040, the 1040A and EZ if you received a federal refund and the amount! Doesn't matter who does the taxes, the question is still there and the numbers are still added into the calculations. :(


Thats correct!

[messajarjar]

:eek: Wow, I have never heard of such a thing. I know that you don't in Ohio or Texas. It doesn't make any sense either. Why would you have to claim money that was refunded to you when it was money that you OVERPAID in the first place????? Are you guys having your taxes done by a CPA or Accountant? Granted, I have no clue in other states, but that just doesn't sound right to me????:confused:

http://www.irs.gov/pub/irs-pdf/f1040sab.pdf?portlet=3

Here is a link to a schedule A. Line 5A is for income taxes you paid to the state in the year you are filing. If you use this form and claim this deduction, then you have to claim the income in the following year. And yes, my taxes are done by an accountant-me!!

[messajarjar]

I don't know - I live in Washington, and we don't have State taxes, just Federal.

Last time we got that silly $300 refund, I misunderstood, and did not claim it on our taxes, I did get a note from the IRS requesting me to pay it back.

I am actually upset about this one. I don't want to receive money I'm going to have to pay back!! Keep it!!!!

I believe that one was a prebate-an advance on the rebate when you filed your taxes for that year. This one isn't supposed to be that. However, I posted in another thread an update on how these are really working. It's not just a flat amount if you meet the income requirements. It has a lot to do with what your actual tax liability (how much you owed before credits and income taxes paid in your wages) for 2007 is.

[mood4amelody]

:eek: Wow, I have never heard of such a thing. I know that you don't in Ohio or Texas. It doesn't make any sense either. Why would you have to claim money that was refunded to you when it was money that you OVERPAID in the first place????? Are you guys having your taxes done by a CPA or Accountant? Granted, I have no clue in other states, but that just doesn't sound right to me????:confused:

Just thought I'd comment on the highlighted parts.... it's the government, so it's not gonna sound right to us real live tax payers!! :p LOL

[messajarjar]

The theory is that tax refunds are overpayments of taxes. So if you hadn't payed to much in it would have been income at the time you earn it-so I guess some states want their piece of the pie any way they can get it! :eek:

[mood4amelody]

The theory is that tax refunds are overpayments of taxes. So if you hadn't payed to much in it would have been income at the time you earn it-so I guess some states want their piece of the pie any way they can get it! :eek:

So in MY theory (:p ) we should be able to claim a loss of the interest we would have earned had the government not been holding our money.

[messajarjar]

So in MY theory (:p ) we should be able to claim a loss of the interest we would have earned had the government not been holding our money.

hehehe...you're a FUNNY lady! :p

[LisaRKR]

http://www.irs.gov/pub/irs-pdf/f1040sab.pdf?portlet=3

Here is a link to a schedule A. Line 5A is for income taxes you paid to the state in the year you are filing. If you use this form and claim this deduction, then you have to claim the income in the following year. And yes, my taxes are done by an accountant-me!!

First let me say that I WASN'T saying that ANYONE was wrong!! I said it didn't make sense and was wondering if these were taxes done by professionals to see if I had something missing! I am sorry if you took offense.

As Texas doesn't have State income tax, I don't believe that we claim it. I looked for it on my taxes from my Accountant, and don't see anywhere that I would have claimed it.

This is what I read from the IRS website that comes from http://www.irs.gov/taxtopics/tc405.html (http://www.irs.gov/taxtopics/tc405.html) click on "Form 1040 instructions" and go to page 20:

Line 10
Taxable Refunds, Credits, or Offsets of State and Local Inclome Taxes

TIP: None of your refund is taxable if, in the year you paid the tax, you either (a) did not itemize deductions, or (b) elected to deduct state and local general sales taxes instead of state and local income taxes.

If you received a refund, credit or offset of state or local inclome taxes in 2007, you may receive a Form 1099-G...........

Apparently it does only apply if you file STATE income tax. At least that is what I read out of it.

And forgive me, the great State of Ohio does run into this as it does have State income tax.

I guess living in Texas does have at least one advantage. LOL

[messajarjar]

First let me say that I WASN'T saying that ANYONE was wrong!! I said it didn't make sense and was wondering if these were taxes done by professionals to see if I had something missing! I am sorry if you took offense.

As Texas doesn't have State income tax, I don't believe that we claim it. I looked for it on my taxes from my Accountant, and don't see anywhere that I would have claimed it.

This is what I read from the IRS website that comes from http://www.irs.gov/taxtopics/tc405.html (http://www.irs.gov/taxtopics/tc405.html) click on "Form 1040 instructions" and go to page 20:

Line 10
Taxable Refunds, Credits, or Offsets of State and Local Inclome Taxes

TIP: None of your refund is taxable if, in the year you paid the tax, you either (a) did not itemize deductions, or (b) elected to deduct state and local general sales taxes instead of state and local income taxes.

If you received a refund, credit or offset of state or local inclome taxes in 2007, you may receive a Form 1099-G...........

Apparently it does only apply if you file STATE income tax. At least that is what I read out of it.

And forgive me, the great State of Ohio does run into this as it does have State income tax.

I guess living in Texas does have at least one advantage. LOL




I didn't take offense at all. Sorry if it came across that way. Your post from the IRS mentions using itemized deductions as well.

[LisaRKR]

I didn't take offense at all. Sorry if it came across that way. Your post from the IRS mentions using itemized deductions as well.

NP, just wanted to make sure. I have to hand it to you, you have to be Wonder Woman to do your job. The government might as well write the tax code in Mandarin since it is so confusing and changes so much! I think there is more to learn than a lawyer. They really just don't make any sense!

[messajarjar]

NP, just wanted to make sure. I have to hand it to you, you have to be Wonder Woman to do your job. The government might as well write the tax code in Mandarin since it is so confusing and changes so much! I think there is more to learn than a lawyer. They really just don't make any sense!


haha-that's what the CPAs are for! I'm content to be just a professional number cruncher. I've been doing personal tax returns for years but it's more of a side thing for me. Just for myself and my family and helping someone who doesn't understand a particular issue. I specialize in payroll tax accounting (also Greek!) and untangling bookkeeping messes. Speaking of which that's where I'm headed right now! I only get to check in here now early morning or late at night....MAYBE on the weekends in between the rest of my life!:D