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Will it make a net tax difference if I apply my state refund to next year's tax instead of taking a state refund particularly given the change in federal tax laws?
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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‎June 4, 2019
4:02 PM