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Posted by Paul Thomas, CPA on December 27, 2007, 3:07 pm
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> In oregon we have gotten a kicker refund. when there is too much money
> in the state coffers all tax payers get this kicker refund. The
> question i have is it says that we have to declare this on our federal
> return as income,how can this be it is a refund of our tax monies?
It's called "the tax benefit rule", and you only have to claim it as income
on the federal return IF you took an itemized deduction for state tax paid
(or withheld) in prior years.
So look on Schedule A on your 2006 return to see if indeed you took anything
for state tax paid. If so, it's most likely going to be taxable.
If not, as in you took the standard deduction amount, then as they say in
Jersey "fuget'boudit".
--
Paul A. Thomas, CPA
Athens, Georgia
--
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