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From: wjm@whuxj.UUCP (MITCHELL)
Newsgroups: net.taxes
Subject: Re: No Double Taxation
Message-ID: <139@whuxj.UUCP>
Date: Tue, 28-Feb-84 16:55:38 EST
Article-I.D.: whuxj.139
Posted: Tue Feb 28 16:55:38 1984
Date-Received: Wed, 29-Feb-84 14:38:12 EST
Organization: Bell Labs, Whippany, N.J.
Lines: 9

No, you are not being taxed twice when you report state income tax refunds
as income, since you SUBTRACTED the tax you paid (which included the refund)
from your income the previous year.  When you report it the following year,
you pay tax on it for the FIRST time.  You do NOT report a state income tax
refund as income if you did NOT deduct the tax the year before (e.g. you took
the standard deduction.
Bill Mitchell
Bell Communications Research, Inc.
Whippany, NJ (whuxj!wjm)