Income Tax Question. $11 refund in from 2015 paid in 2016 from Oregon

[Microman]

Have my granddaughters taxes done using TurboTax. But I now she got an $11 refund from the State of Oregon, now living in California, in 2016 for the tax year 2015.

She gets all of Federal back this time (2016), because she didn't make much. And pays $10, just about what she paid in too California.

So does she need to add the $11 refund from Oregon when doing her 2016 Taxes as income?, I would think so, and will review to see where it might go.

Everything else seemed to import from 2015 Taxes to Start 2016 taxes.

I had t call TurboTax help. What a crack up. She realizes I am on a Mac, and had to suffer the "how do you delete on a Mac, she asked?", I said the "DELETE KEY", and it worked.

Granddaughters taxes got caught in a loop. She is being claimed by her father, so she doesn't claim herself. So the program gets to the part where it asks about HEALTH INSURANCE COVERAGE, and it says since someone else is claiming you, you don't need to deal with health insurance. Then during final review it says, you missed something in health insurance. And it went round and round. No way to see why. Lady online, said lets try saying that she is going to claim herself. Then the program asked about college degree, and choice of health care. Got thru that and before hitting review, went back and changed to SOMEONE ELSE is claiming me. And then went to review and all is well.

Wierd.

[Acer]

She would only add the refund as income for 2016 if she had itemized deductions and, within that, deducted taxes paid and/or withheld for the 2015 year.

(And I am guessing she didn't itemize given that tiny financial footprint.)

[Bill in NC]

yep, you count it the year you get it, even if it's dated last year.

had a problem with the state not sending a refund for tax year 2014.

finally got it early last year.

[max]

I don t do my own taxes, my wife does, but I am curious why do you need to list a refund as income, theoretically you are getting your own money back, money you earned previously, money you already declared previously, money you already paid taxes on....

[JoeH]

If you itemize deductions for taxes, state taxes withheld is deducted from income and usually reduces your federal taxes for that year. As such the refund becomes taxable income in the year returned. Using the standard deduction, the withheld state tax does not get deducted and does not affect your tax.

[max]

Thanks.
Living in a state without income tax makes ones life a lot easier...

[Speedy]

max wrote:
Thanks.
Living in a state without income tax makes ones life a lot easier...

And less tax progressive.