Monday, February 25, 2013

Tax refund from NJ and paid taxes to CA in 2005 do I still have to report the NJ tax refund?

Question by CarEnsure: Tax refund from NJ and paid taxes to CA in 2005 do I still have to report the NJ tax refund?
I was a non-resident in CA and resident of NJ for 2005. I got a Tax refund of 1200 from NJ and paid additional taxes of 1800 to CA in 2005 do I still have to report the NJ tax refund for my 2006 Federal return on Line 10 “Taxable Refunds, Credits, or Offsets of State and Local Income Taxes” I got Form 1099-G from NJ but nothing from CA. Please advice.
BTW – I did itemize my deductions for 2005

Best answer:

Answer by bostonianinmo
If you itemized your deductions for 2005 and took a deduction for State Income Taxes paid on your Federal Income Tax Return, you must claim the NJ refund as income on your 2006 Federal Income Tax Return.

If you did NOT itemize on your 2005 Federal Income Tax Return, you do NOT claim the tax refund as income on your 2006 Federal Income Tax Return.

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Tax refund from NJ and paid taxes to CA in 2005 do I still have to report the NJ tax refund?

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