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URL:  https://boards.fool.com/state-refund-question-25125307.aspx

Subject:  State refund question Date:  2/3/2007  2:20 PM
Author:  fleg9bo Number:  91649 of 132878

In 2006 I received a partial refund of my 2003 state taxes due to filing an amended return. So the question is, do I have to declare this as income on my 2006 federal return?

In 2003 I paid a little AMT, so I believe it is safe to not declare this refund as income, as my Schedule A deductions were trashed by AMT. Is it correct that if you pay any AMT at all, it means that your usual Schedule A deductions don't count at all (except for the few that AMT allows, of course)?

Second item: The state sent along some interest as part of the refund check. I believe that there is no excuse not to declare the interest. Right?

In sum, declare the interest, let the refund slide. Am I two for two?

--fleg
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