Anyone else find this fishy?

Discussion in 'Off Topic [BG]' started by MakiSupaStar, Jan 23, 2009.

  1. MakiSupaStar

    MakiSupaStar The Lowdown Diggler

    Apr 12, 2006
    Huntington Beach, CA
    So for the last few years, I've had to claim my state tax return as income. Or I believe I do. I'm getting something like a W2 from the state showing my tax return amount. Is the state really making us claim the extra money they taxed us as income? How is this not double tax? I'm not smart. Can someone explain this to me? Am I missing something? Does this happen in other states?
  2. Stigs


    Sep 29, 2007
    Richmond, Virginia
    Solution: Don't pay taxes!
  3. N8116B


    Jan 14, 2008
    You mean your state tax refund?

    Yes that is income if you had used what you had withheld for state taxes as a deduction on your federal tax return.

    Think of it like this.

    On your federal taxes you deduct X amount for state taxes. That reduced your tax liability to the feds by X.

    X was the amount of state taxes that were withheld as shown on your W2. X is NOT the actual state tax you paid that year on your return.

    After finishing up your fed tax return you start on your state tax return and find out you are getting Y back from the state taxes that you had withheld.

    That means you should have only reduced you fed taxes by X-Y not X. But the fed allow you to still claim X and then next year consider Y as income.
  4. WillPlay4Food

    WillPlay4Food Now With More Metal! Supporting Member

    Apr 9, 2002
    Orbiting HQ
    The state should've given you a 1099-G form showing your tax refund. If you itemized last year's taxes, then you have to report your state tax refund as income.

    Again, you should only have to do this if you itemized your deductions last year and included state income tax as a deduction.


    Disclaimer, I am not a tax pro, do not rely on my advice. If you have concerns, see a tax pro.
  5. MakiSupaStar

    MakiSupaStar The Lowdown Diggler

    Apr 12, 2006
    Huntington Beach, CA
    Yeah. I itemized. That's exactly what happened. I get it now. I guess I'm just bitter at the world. Thanks for you response guys. Now everyone get the hell off my lawn. ;)
  6. PSPookie


    Aug 13, 2006
    Albuquerque, NM

    They are taxing you this year for the difference between the amount of tax you claimed you paid to CA last ear and the amount that you actually paid.

    In essence they are taxing you on previously untaxed income. They're just a year late on it.

    This is only taxable if you itemized for the 2007 return and you claimed your state income tax as a deduction.
  7. whacky americans :rolleyes:

    up here in canada they give us our tax refunds in donuts, poutine and boxes of deep-fried moose schlong .. it's not considered income but a gift for just being so darned swell :D
  8. Phalex

    Phalex Semper Gumby Supporting Member

    Oct 3, 2006
    G.R. MI
    So what's one of those weigh??
  9. depends on how much sauerkraut and bacon bits you add to it ..... or did you just mean without all the fixins?
  10. Phalex

    Phalex Semper Gumby Supporting Member

    Oct 3, 2006
    G.R. MI
    Well, yeah, but sauerkraut and Bacon huh????? I'd give her a go.
  11. And if your yearly income is over $100,000, you get a tax refund of Bryan Adams and Celine Dion cd's for beings such a greedy SOB.
  12. .. and avril lavagina and let's not forget 'ol what's her name ..... ummm ..... the jagged little pill chick ..... but that's only if you make the BIG bucks .. she hand delivers her newest cd in/and a hummer

    read it as you see fit :p

    thread detour? .. check! (or 'cheque' up here in the great white north)
  13. funkybass4ever


    Dec 12, 2007
    Time to move to Florida maybe?
  14., but I do find this fishy:

  15. Phalex

    Phalex Semper Gumby Supporting Member

    Oct 3, 2006
    G.R. MI

    It could be a Tuna......
  16. I just wish our taxes were higher.

    I mean, they (fed govt) work so hard for their wages and they don't waste a cent of it (our tax dollars).

  17. Fontaine


    Apr 27, 2006
    Maki caught a fish to:hyper:


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