Ron S <a...[at]a.com> wrote:

- quote -

If your "local tax overpayment" resulted in a reduction of
your federal income tax liability, then a refund of the
overpayment (whether received in cash or as a credit) would
be considered taxable income for the year received. Not all
payments of local tax result in a tax benefit, however.

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- quote -

Like almost all tax questions, the answer depends. If you
fully deducted the local taxes on your 2005 return (usually
on Schedule A), then received a refund or credit in 2006 for
a portion of the amount you deducted, the tax benefit
doctrine requires you to include the refunded or credited
amount as income on your 2006 return.

Frederick Lorca

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"Ron S" <a[at]a.com> wrote:

- quote -

Yes, if you deducted it on a prior Schedule A and got full
tax benefit from the deduction. See IRS Publication 525.

--
Phil Marti
Clarksburg, MD

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"Ron S" <a[at]a.com> wrote:

- quote -

I assume that this is a local income tax. If you itemized
it in a prior year - probably. Again the IT DEPENDS. I can
not tell you for sure without looking at last years return.

Rgs,

Mark

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"Ron S" <a[at]a.com> wrote:

- quote -

YES

(unless you had AMT - in which case you've got a bit of calculating to do)

___________________________________
<<< Benjamin Yazersky, CPA [NJ & NY] > > -----> real address on hobokeni or hobokenx <-----

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If I applied a local tax overpayment as a credit toward the
following tax year's local taxes, do I need to claim that
credit as a refund for my fed income?

<< ================================================== ===== > << 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. > << ================================================== ===== >