0
I assume that this question is about an income tax refund, and not about an income tax return (which is the form you file with income tax authorities every year, along with any income taxes you still owe.)
A Federal income tax refund is not taxable income (for state or Federal purposes) in the year a taxpayer receives it.
A state income tax refund for a previous tax year, however, may be another story. It will be Federal taxable income in the year in which the taxpayer receives the refund, if he itemized deductions on the previous year's Federal income tax return.
Suppose a taxpayer files his 2010 Form 1040, and itemizes his deductions. Following the instructions for the 1040, he deducts $500 withheld as state income tax (shown on his W-2) in computing his 2010 Federal taxable income. He then prepares his state income tax return and discovers that he owes only $435 in state income tax, and is due a refund of $65 (the difference between the $500 withheld and his actual liability of $435). His actual state tax liability was only $435, but he had deducted $500 from his 2010 Federal taxable income, so when he gets the $65 refund in 2011, he must include it in 2011 income for Federal income tax purposes to make up the difference.
However, if the state refund was for a tax year for which the taxpayer did not itemize deductions on his Federal tax refund (i.e., he took the standard deduction), it is not taxable income to him.
Wiki User
∙ 12y ago
Add your answer:
Earn +20 pts
You live in Oklahoma and will be working in California for a while do you have to pay California state income taxes and Oklahoma taxes also?
Yes this can happen you will have to file your resident state income tax return and your nonresident state income tax return.
Does a child pay capital gains taxes?
Yes it is very possible that a child would have to file a 1040 federal income tax return and pay any income tax that would be due when the tax return is completed correctly.
If I'm retired do i have to pay state taxes?
Yes it is very possible that would have to pay some state income taxes when you report all of your gross worldwide income on the income tax return for the year.
How much taxes do you pay on a slip and fall settlement?
The settlement will be listed as income on your Federal tax return. You will pay the tax percentage of the bracket you are in that year.
Do partnerships pay income taxes?
No but they do file a 1065 income tax return and report each partners share of the taxable income to them on a schedule 1065 K-1 and each partner then reports the partner share on the income tax return an pays all of the necessary taxes on it.
How are income taxes primarily collected in the US?
By the withholding of taxes from the source of the income and when taxpayers file and pay quarterly estimated taxes with the pay as you earn income system and after the end of the tax year when the taxpayer completes the income tax return correctly and pays any remaining taxes that may be owed after the income tax return is completed correctly. Study Island answer: tax withholding
You live in Oklahoma and will be working in California for a while do you have to pay California state income taxes and Oklahoma taxes also?
Yes this can happen you will have to file your resident state income tax return and your nonresident state income tax return.
Does someone under the age of eighteen and working have to pay to taxes?
Sure they would be required to file a 1040 federal income tax return and pay any income taxes that may be due. Under 950 of unearned income (did not work for income) would be required to file a 1040 federal income tax return and pay some income taxes on the amount over 950 of UNEARNED income.
Do i have to pay taxes on a trust fund?
If you derive income from a trust fund then you must declare that income on your tax return.
How do you avoid paying capitol gains tax when selling a rental house in Canada?
You will have to complete your income tax return correctly and pay any income taxes that may be due when the income tax return is completed.
Do you have to pay taxes if you are a student?
Yes it is very possible that you would be required to file a 1040 federal income tax return and may be owe some income tax taxes.
Does a child pay capital gains taxes?
Yes it is very possible that a child would have to file a 1040 federal income tax return and pay any income tax that would be due when the tax return is completed correctly.
If I'm retired do i have to pay state taxes?
Yes it is very possible that would have to pay some state income taxes when you report all of your gross worldwide income on the income tax return for the year.
How much taxes do you pay on a slip and fall settlement?
The settlement will be listed as income on your Federal tax return. You will pay the tax percentage of the bracket you are in that year.
Do partnerships pay income taxes?
No but they do file a 1065 income tax return and report each partners share of the taxable income to them on a schedule 1065 K-1 and each partner then reports the partner share on the income tax return an pays all of the necessary taxes on it.
As a census employee if you filed exempt on your taxes do you have to pay them back?
When you complete your income tax return correctly after the end of of the year and if you end up with an income tax liability YES. You will have to pay the amount of income tax that are owed at that time.
What do you have to pay income tax for?
taxes
