- quote -

As a nonresident alien (NRA) you were not entitled to a
standard deduction. Thus your standard deduction was zero,
making the state income tax you deducted more than your
standard deduction. The tax benefit doctrine governs the
taxability of state income tax refunds. Since you received
a tax benefit on your 2005 federal return from having
deducted your state income tax and in 2006 you recovered the
full amount of state income tax paid the prior year, the
refund is taxable on your 2006 federal return.

Frederick Lorca

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"My interest" <myinter...[at]gmail.com> wrote:

- quote -

You received a "tax benefit" from the deduction (even if
less than the standard deduction would have provided),
therefore the refund is taxable on your 2006 return.

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

I filed as a non-resident in 2005 and got a state tax
refund of $525. I itemized my deduction in 2005 though
my total deduction is just this state tax of $525 which
was less than the standard deduction.

What's the tax status of my 2005 state tax refund for
2006?

Thanks.

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >