In article <f0b648f2-76b2-4c15-b545-c82491f64289[at]34g2000hsz.googlegroups.com> ,
Mark21286 <Mark21286[at]gmail.com> wrote:

- quote -

Did you deduct that amount on your Federal Income Tax form for the
year in which you paid it? That's the key question.

- quote -

If you didn't deduct it, the refund isn't taxable, just ignore it (but
keep records in case they ask about it).

If you deducted it, the refund may be taxable, depending on the tax
benefit you got from deducting it.

If the payment and refund both occurred in the same calendar year, you
can either deduct the payment and enter the refund, or ignore both of
them.

Seth

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<< ------------------------------------------------------- > << 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 (2007) - All rights reserved. > << ------------------------------------------------------- >

On Feb 18, 3:10*pm, Mark21286 <Mark21...[at]gmail.com> wrote:
- quote -



Mark, you got three answers to your question. What is it that you
don't understand? If you didn't deduct the refund (the check you
wrote in response to the notice, not the amount that was originally
withheld) on your federal income tax return, you don't have to pay tax
on the refund. It's that simple. You can put the 1099G in your file
in case any question ever comes up, but you don't have to include the
amount anywhere on your federal income tax return.

Maryland does not allow any deduction for state income taxes.
Therefore a refund of state income taxes is not income for Maryland
purposes.

Katie in San Diego

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<< ------------------------------------------------------- > << 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 (2007) - All rights reserved. > << ------------------------------------------------------- >

On Feb 14, 5:26 pm, "Paul Thomas, CPA" <paulthomascp...[at]bellsouth.netwrote:
- quote -

sale of the stock which I assumed would mean that the State of
Maryland received the info. The IRS received the withholding
information. Then I got a letter from the State stating they received
information from the Feds that I had this income but never paid taxes
to the State on it. I was told that I had to pay taxes on it
immediately and file for a review to the State with any documentation
I had. I sent them a check for the amount they said I owed and after a
few weeks, after I produced documentation proving I had already paid
taxes on it, they sent me a check for the total amount. Then I
received a 1099G stating this was income I received from the State. I
just want to know where on my 1040 or State taxes I enter this 1099G
information so I don't pay taxes on it again. I'm using TurboTax and
can't figure out where to enter it. When I enter it as a State 1099G
refund my total tax bill goes way up!!

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<< ------------------------------------------------------- > << 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 (2007) - All rights reserved. > << ------------------------------------------------------- >

On Feb 14, 2:26*pm, "Paul Thomas, CPA" <paulthomascp...[at]bellsouth.netwrote:

- quote -

True, but if you were subject to the itemized deduction phaseout, or
to AMT, then the computation is more difficult. The instructions for
line 10 give about 10 reasons why you should use the more complicated
computations (phaseout and AMT are just two of them).

--
<< ------------------------------------------------------- > << 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 (2007) - All rights reserved. > << ------------------------------------------------------- >

In article
<0961ea43-bab8-43e5-bd6a-d5c7f3db0b7c[at]e23g2000prf.googlegroups.com> ,
Mark21286 <Mark21286[at]gmail.com> wrote:

- quote -

That's the definition of a tax refund. The reason for the overpayment
(excess withholding versus sending a tax payment that the state asks
for) is irrelevant. If you deducted the overpayment, you have to pay
tax on the reimbursement to balance things out.

--
Barry Margolin, barmar[at]alum.mit.edu
Arlington, MA
*** PLEASE don't copy me on replies, I'll read them in the group ***

--
<< ------------------------------------------------------- > << 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 (2007) - All rights reserved. > << ------------------------------------------------------- >

"Mark21286" <Mark21286[at]gmail.com> wrote
- quote -






If you deducted the tax payment TO the state in the year in which you wrote
the check, then the refund/reimbursement FROM the state is taxable to you in
the year you received it.

If you did not deduct that payment (but maybe deducted other state taxes)
then that refund is not included in your income at all.





--
Paul A. Thomas, CPA
Athens, Georgia

--
<< ------------------------------------------------------- > << 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 (2007) - All rights reserved. > << ------------------------------------------------------- >

I received a reimbursement of taxes I paid to the State of Maryland in
2007 for the 2006 return. The State required me to send them an amount
of money which they did not have on record representing withholding
from a stock sale. When I produced the data proving that the
withholding took place they sent me a reimbursement of the total
amount of the check I sent them. Now I received a 1099G which shows
that I received a State of Maryland refund for that amount. This
wasn't a refund, it was a reimbursement of overpayment. If I claim
this on my 1040 it will look like income I received. How do I cancel
this out?

--
<< ------------------------------------------------------- > << 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 (2007) - All rights reserved. > << ------------------------------------------------------- >