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Level 1
June 3, 2019
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Is a pro-rated refund of NC vehicle tax considered taxable income the following year?

  • June 3, 2019
  • 1 reply
  • 3 views
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Best answer by DanielV01

It depends.  The question would be if you itemized deductions last year on your Federal Return and used these taxes as part of the deduction.  If that is the case, then, yes, the refund you received on the vehicle tax would be considered taxable income on the Federal return (but not on a NC return).

If you did not itemize, the refund is not taxable.

Did you itemize?  The following FAQ can assist you to find out:  https://ttlc.intuit.com/replies/4767958

1 reply

DanielV01
DanielV01Answer
Level 15
June 3, 2019

It depends.  The question would be if you itemized deductions last year on your Federal Return and used these taxes as part of the deduction.  If that is the case, then, yes, the refund you received on the vehicle tax would be considered taxable income on the Federal return (but not on a NC return).

If you did not itemize, the refund is not taxable.

Did you itemize?  The following FAQ can assist you to find out:  https://ttlc.intuit.com/replies/4767958

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