Taxable State Refunds
February 10th, 2010
Question: Do I need to show as taxable income in New Jersey state returns for 1099-G refund from last year?
I received in the mail a 1099-G form from New Jersey stating my $590.00 refund from tax last year in 2007. I know for the federal tax returns, I need to show as taxable income.
Do I need to show as my state refund from last year as taxable income when filing my taxes for New State this year? Please let me know.
Answer: I checked the New Jersey Gross Income Tax Instructions and found, on page 20, that income tax refunds should not be included anywhere on the form. Here's the link:
http://www.state.nj.us/treasury/taxation/pdf/other_forms/tgi-ee/2008/081040i.pdf
Also, please don't assume that the $590 is taxable as federal income. It is only taxable if you a) itemized your deductions on your federal return last year, and b) deducted income tax on Schedule A Line 5a (instead of sales tax on Line 5b). In addition, it is only taxable to the extent that your Line 5a amount exceeded your Line 5b amount (that you COULD have used), OR to the extent that the amount that your itemized deductions exceeded the standard deduction you COULD have taken (whichever is less).
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When are state income tax refunds includible in federal taxable income?: An article from: The Tax Adviser $5.95 This digital document is an article from The Tax Adviser, published by American Institute of CPA's on May 1, 1993. The length of the article is 729 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available in your Amazon.com Digital Locker immediately after purchase. You can view it with any web browser.From the supplier: A cor... |
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Tax treatment of rebates may be clearing up: here's how to manage these payments' tax recognition.: An article from: Journal of Accountancy $9.95 This digital document is an article from Journal of Accountancy, published by American Institute of CPA's on October 1, 2008. The length of the article is 2572 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available immediately after purchase. You can view it with any web browser.Citation DetailsTitle: Tax treatment of rebate... |
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