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From: drv@eisx.UUCP (Dennis Vogel)
Newsgroups: net.taxes
Subject: More on state income tax
Message-ID: <696@eisx.UUCP>
Date: Tue, 28-Feb-84 09:22:47 EST
Article-I.D.: eisx.696
Posted: Tue Feb 28 09:22:47 1984
Date-Received: Wed, 29-Feb-84 11:49:40 EST
Organization: American Bell, South Plainfield NJ
Lines: 16

I'm getting confused on this business about declaring
state tax refunds as income in the following year.
What I think I'm hearing is that if I overpay my tax
through state witholding (on money that I have already
payed federal tax on for the year it was earned) and get
a refund of my overpayment it should be declared as income.
Unless I'm not figuring it right, I was already
taxed on it once, wasn't I?  I just sent some money to
the state to hold for me in anticipation of the tax I
would owe.  (Not by choice, mind you.  The state like
the feds like us to pay-as-we-go.)  Why should I have
to treat as income money that is rightfully mine and has
already been taxed once as income?  Someone please explain
what's going on here.

Dennis Vogel, AT&T Information Systems Labortories