Does a tax refund count as income? Do Estimated Tax payments count as expenses?

[Kitty007]

I got a big tax refund last year, do I count it as income?

Also I paid taxes quarterly, and I entered the info in the Estimated Tax payment section. However I also paid a big quarterly payment for 2015 taxes but in March of 2016. Does that count as a 2016 expense?

Thanks!

[IreneS · Accepted solution]

No - If it's the federal refund, you do not report that as income. 

Yes - If it's the state refund and you itemized deductions last year.

No - If it's the state refund and you took the standard deduction last year (did not itemize).

Estimated tax payments are considered credits towards your taxes owed and are not considered an expense.  You are absolutely correct to enter the payments in the Estimated Tax payment section!

The payment you made for 2019 taxes in March 2020 is a credit on your 2019 return, not an expense in either year.

[Edited | 4/8/2020 |  10:45am PDT]