Message Font: Serif | Sans-Serif
 
No. of Recommendations: 0
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
Print the post  

Announcements

Disclaimer:
In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.