Solved: Re:Any State or Local Income Tax Refunds?The state kept my state tax refund because of a prior year not filed by spouse, (MFJ) Do I still put that in 2017's return?
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Re:Any State or Local Income Tax Refunds?The state kept my state tax refund because of a prior year not filed by spouse, (MFJ) Do I still put that in 2017's return?

Under taxable income, I am supposed to include last year's state return, but if I didn't receive it, it should not be included in my income, right?
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Level 4

Re:Any State or Local Income Tax Refunds?The state kept my state tax refund because of a prior year not filed by spouse, (MFJ) Do I still put that in 2017's return?

Claim it as income and then deduct it as a tax paid. It does seem like you should just not claim it, since you did not get it, but the IRS would say, yes, you did get it, but then it was used to pay a back tax. 

Enter what they kept under Deductions & Credits

  • Sign into your account and your return
  • Click Federal on the left side-bar
  • Click Deductions & Credits along the top
  • Scroll down to "Estimates and Other taxes Paid" and click Show more
  • Scroll down to "Other Income Taxes" and click Start
  • Scroll down to “Payments for 2015 or a prior year state or local income taxes paid in 2017” and click Start

View solution in original post

1 Reply
Level 4

Re:Any State or Local Income Tax Refunds?The state kept my state tax refund because of a prior year not filed by spouse, (MFJ) Do I still put that in 2017's return?

Claim it as income and then deduct it as a tax paid. It does seem like you should just not claim it, since you did not get it, but the IRS would say, yes, you did get it, but then it was used to pay a back tax. 

Enter what they kept under Deductions & Credits

  • Sign into your account and your return
  • Click Federal on the left side-bar
  • Click Deductions & Credits along the top
  • Scroll down to "Estimates and Other taxes Paid" and click Show more
  • Scroll down to "Other Income Taxes" and click Start
  • Scroll down to “Payments for 2015 or a prior year state or local income taxes paid in 2017” and click Start

View solution in original post

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