Are State and local tax refunds taxable Summary State and local tax refunds are considered taxable income by the IRS. Refunds of sales tax, property tax, and other non-income taxes are generally not taxable. If you receive a state or local tax refund in error, you’ll need to take steps to correct the mistake. Receiving […]
Whether it’s a child, a friend or a relative you support, the term ‘support’ is generally defined as what you spend on a person to provide the basic necessities of life. While the specifics may be debatable in certain circles, here’s what the IRS considers typical for the purposes of a tax return. Need help […]
When would my state or local tax refund count as income? Your state or local tax refund received in 2019 could count as income if you itemized your deductions in 2018. If you did this, your 2018 tax return would have a Schedule A. If your return doesn’t have a Schedule A, then your state […]
[ad_1] Using Your 401k to Reduce Taxable Income: As you file your taxes, you’re probably thinking about ways to reduce your taxable income. Did you know that there are a lot of strategies you can use with your retirement funds, like your IRA and 401(k), to reduce your taxable income? Save for the future and […]
State and local tax refunds: If you’re wondering why this is listed under income, it’s because the IRS may consider your state and local refund taxable if you got a state and local income tax deduction on last year’s federal return. State and local income tax refunds may be taxable in the year you received […]