WT@#$$?? 2003 Federal tax on 2002 State refund?

GreenLantern

Who here does there own individual taxes? I got a 1099G in the mail this week so I went to update my 1040 and here it looks like I've gotta pay taxes on my state refund from 2002. Am I missing something? I don't recall this last year. This sure seems like some type of taxation-double-jeopardy. Please, someone tell me I'm doing something wrong.

n/a

Refund on State tax is income according to the IRS, so ya gotta pay federal income tax on it..SUCKS DONT IT. [V][V]



"I dont care how thin you make a pancake, it still has two sides"

"A wise man is a man that realizes just how little he knows.

Contender Man

It's always been that way and in my mind it's always "bit the big one". Of course this comes from a guy that thinks the tax structure should be returned to the level prior to WW I and that all government should be sized accordingly ....


If you only have time to do two things so-so, or one thing well ... do the one thing!

jpwolf

I agree CM, if the illegal income tax was abolished, I for one would have plenty to buy my own health insurance and prescription drugs, among other things.

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"If there must be trouble let it be in my day, that my child may have peace" -Thomas Paine

If the people have become so apathetic that they will not vote out all the liberal scum (republican and democrat alike), the only solution is Constitutional Convention II the sequel. Let's get it right this time.

bolthandle

So........... the IRS wants you to pay taxes on refund money that you were taxed for.

Man what a rip.[}:)]

Maybe thats the error on mine thats keeping me from my refund.[:0]

Bolt

PEACE THROUGH SUPERIOR FIREPOWER

HAIRY

But no one complains that he was able to take the deduction for the state income tax in the first place. [;)]





Don't assume malice for what stupidity can explain.

gruntled

It's not income but an adjustment for the deduction you took on state taxes before. If you didn't itemize then you don't have to report it.
Best way is to under withhold for both. Why give either one an interest free loan?

familyguy

bolthandle - that's where the misconception lies....you weren't taxed on it before. If it's a State refund, it was originally paid by you as State tax, hence NOT included in your income on your Federal return (more accurately, claimed as a deduction).



Got a new gun for my ex-wife.....pretty good trade, huh?

GreenLantern

Ok, I looked at last years and you're right. I didn't itemize. This was the first year.

While, yes, I don't like the idea of giving the gov an interest free loan it is kind of nice to get a check. While I do save for a rainy day, I'm more inclined to pay off bigger bills or invest some of that return than if I put $10 or whatever into a savings account every week.

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Sometimes, when someone is talking to me, my mind drifts off and I
start thinking about guns I'd like to own.