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daffodils
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I moved states in 2015. I had a tax bill of $1805 in NC in 2015 and received a refund of $439 from WI in 2015, Is the WI refund taxable income?

 
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I moved states in 2015. I had a tax bill of $1805 in NC in 2015 and received a refund of $439 from WI in 2015, Is the WI refund taxable income?

If you Itemized deductions on your Federal tax return for 2015, then the WI refund has to be entered as a state refund, for inclusion as Federal income for 2016.

The upside is that the $1805 tax bill for NC can be put in as a state tax payment during 2016 on the Deductions and Credits page, so it cancels out most of it.    They have to be entered separately.....because sometimes there is some math handwaving with the amounts based on the actual details of each year's tax returns.....but that's what the software deals with.

 

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*

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I moved states in 2015. I had a tax bill of $1805 in NC in 2015 and received a refund of $439 from WI in 2015, Is the WI refund taxable income?

If you Itemized deductions on your Federal tax return for 2015, then the WI refund has to be entered as a state refund, for inclusion as Federal income for 2016.

The upside is that the $1805 tax bill for NC can be put in as a state tax payment during 2016 on the Deductions and Credits page, so it cancels out most of it.    They have to be entered separately.....because sometimes there is some math handwaving with the amounts based on the actual details of each year's tax returns.....but that's what the software deals with.

 

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
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