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#5
02-10-2005, 06:29 AM
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 Re: avoiding taxable refund: sales tax vs income tax deduction "guavaln[at]yahoo.com" <guavaln[at]yahoo.com> wrote: - quote - > brew_one[at]e-mailanywhere.com wrote:
Maybe. Here in Colorado we have refunds (some years, not> > Taxpayer who itemizes: if they opt to use the sales tax > > deduction on Sch A, will they avoid having to pay taxes on > > their (anticipated) state refund? 2005) that are based on sales taxes. So in a year in which there is a sales tax refund, THAT would be taxable if you claimed the sales tax deduction instead of the income tax deduction;. -- Tom Healy, CPA Boulder, CO Web: http://www.tomhealycpa.com << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#4
02-10-2005, 05:13 AM
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| Re: avoiding taxable refund: sales tax vs income tax deduction guavaln[at]yahoo.com wrote: - quote - > brew_one[at]e-mailanywhere.com wrote:
It would depend upon how much income tax was withheld and> > Taxpayer who itemizes: if they opt to use the sales tax > > deduction on Sch A, will they avoid having to pay taxes on > > their (anticipated) state refund? > Yes. The state income tax refund does not need to be added > back if there was no tax benefit from it (i.e., no > deduction) in the year it was paid. > This is a reason why it may be worthwhile for taxpayers in > states that have income taxes, even those at relatively high > rates, to consider electing the sales tax deduction rather > than the state income tax deduction. will be refunded vs. how much the sales tax deduction will be. -- Frederick E. Jorden http://Tax-Accounting-Payroll.com 7825 Midlothian Tpk - 207 Richmond, VA 23235-5247 EMAIL knowtax[at]bigfoot.com (804) 320-6210 FAX (804) 320-6211 << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#3
02-10-2005, 04:35 AM
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| Re: avoiding taxable refund: sales tax vs income tax deduction Phil Marti wrote: - quote - > <brew_one[at]e-mailanywhere.com> wrote:
Phil meant to say "Yes" as the question was worded "will> > Taxpayer who itemizes: if they opt to use the sales tax > > deduction on Sch A, will they avoid having to pay taxes on > > their (anticipated) state refund? > No. If the income tax wasn't deducted, a refund of it isn't > income. they avoid having to pay" rather than "will they have to pay." -- Alan http://taxtopics.net << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#2
02-09-2005, 04:33 AM
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| Re: avoiding taxable refund: sales tax vs income tax deduction brew_one[at]e-mailanywhere.com wrote: - quote - > Taxpayer who itemizes: if they opt to use the sales tax
Yes. The state income tax refund does not need to be added> deduction on Sch A, will they avoid having to pay taxes on > their (anticipated) state refund? back if there was no tax benefit from it (i.e., no deduction) in the year it was paid. This is a reason why it may be worthwhile for taxpayers in states that have income taxes, even those at relatively high rates, to consider electing the sales tax deduction rather than the state income tax deduction. Katie in San Diego The foregoing is intended for educational purposes only and does not constitute legal or professional advice. << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#1
02-09-2005, 03:55 AM
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| Re: avoiding taxable refund: sales tax vs income tax deduction brew_one[at]e-mailanywhere.com wrote: - quote - > Taxpayer who itemizes: if they opt to use the sales tax
Next year; yes.> deduction on Sch A, will they avoid having to pay taxes on > their (anticipated) state refund? ChEAr$, Harlan Lunsford, EA n LA Mon 7 Feb 2005 << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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02-09-2005, 02:01 AM
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| Re: avoiding taxable refund: sales tax vs income tax deduction <brew_one[at]e-mailanywhere.com> wrote: - quote - > Taxpayer who itemizes: if they opt to use the sales tax
No. If the income tax wasn't deducted, a refund of it isn't> deduction on Sch A, will they avoid having to pay taxes on > their (anticipated) state refund? income. -- Phil Marti Clarksburg, MD << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#-1
02-07-2005, 05:38 PM
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| avoiding taxable refund: sales tax vs income tax deduction Taxpayer who itemizes: if they opt to use the sales tax deduction on Sch A, will they avoid having to pay taxes on their (anticipated) state refund? << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
| Tags |
| avoiding, deduction, income, refund, sales, tax, taxable |
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