Is a pro-rated refund of NC vehicle tax considered taxable income the following year?

shannonbibb · ‎June 3, 2019

DanielV01 · ‎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

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

View solution in original post

DanielV01 · ‎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

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

Expert does your taxes

Do it yourself

Resources

Support

Is a pro-rated refund of NC vehicle tax considered taxable income the following year?