Relay-Version: version B 2.10 5/3/83; site utzoo.UUCP Posting-Version: version B 2.10 5/3/83; site houxz.UUCP Path: utzoo!watmath!clyde!burl!ulysses!mhuxl!houxm!houxz!halle1 From: halle1@houxz.UUCP (J.HALLE) Newsgroups: net.taxes Subject: Re: id AA12739; Wed, 22 Feb 84 05:23:25 pst Message-ID: <676@houxz.UUCP> Date: Wed, 22-Feb-84 17:02:58 EST Article-I.D.: houxz.676 Posted: Wed Feb 22 17:02:58 1984 Date-Received: Thu, 23-Feb-84 05:37:20 EST References: <5739@decwrl.UUCP> Organization: Bell Labs, Holmdel NJ Lines: 9 You only need to report any state or local tax refund to the extent it reduced your tax. If you did not itemize, ie you took the standard deduction, you do not report it at all. If you did itemize and declared a deduction for the taxes paid, you must report the refund as income, WITH ONE EXCEPTION. Suppose your itemized deductions totaled $3500, including $900 for state tax. (Just example numbers. Assuming married so standard deduction is $3400.) You received a $300 refund. Only $100 of this is reported, as the remaining $200 did not reduce your tax. (I doubt that this exception ever happens, but it is part of the code.)