I'm expecting a particularly large state tax refund this year because of large end-of-year charitable contributions. I will itemize deductions this year, but do not expect to itemize next year with the change in the standard deduction. If I take the state tax refund, I know that comes back as income in next year's taxes, so it seems to make sense to not take that refund and change my state payroll deductions instead. However, I know there are some provisions about prepayment of state taxes in the new federal tax law.
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"so it seems to make sense to not take that refund"
You can't "not take" the state refund. Applying it to next year's taxes is doesn't mean you didn't "take" the refund; you in effect took the refund and then sent it back to the state as estimated taxes. I can't see that there's anything in the new federal law that affects that.
Tom Young
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