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From: mark@elsie.UUCP
Newsgroups: net.taxes
Subject: Re: id AA12739; Wed, 22 Feb 84 05:23:25 pst
Message-ID: <821@elsie.UUCP>
Date: Thu, 23-Feb-84 06:26:44 EST
Article-I.D.: elsie.821
Posted: Thu Feb 23 06:26:44 1984
Date-Received: Fri, 24-Feb-84 02:25:29 EST
References: <676@houxz.UUCP>
Organization: NIH-LEC, Bethesda, MD
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One other exception (as I understand the tax code). If you only deduct the
amount of state tax you actually owed, rather than what you payed out in the
taxable year, then the refund is not taxable since it did not affect the
tax you payed for the previous year. Generally, you're better off deducting
the state tax (withholding + estimated) acutally *paid* in the year. Tax on
the refund gets deferred until the next year (or at least 3 months if you
have to pay estimated).

-- 
Mark J. Miller
NIH/NCI/DCE/LEC
UUCP:	decvax!harpo!seismo!rlgvax!cvl!elsie!mark
Phone:	(301) 496-5688