| Topic Name: |
URGENT Tax Question? |
| Message Name: |
Im not a tax accountant |
| Date Posted: |
02/17/2008 |
| In Reply To: |
It's been a few years (approximately 10) since I worked on the tax side. However, I don't believe the tax code has changed on these.
1. The answer is - it depends. If you itemize your deductions in the year that the refund is generated, then the refund will be taxable income for the year in which it is received (in your case - if you itemize for your '07 return, the refund will be taxable for '08).
2. As long as you don't underpay for the year, it will not matter that you do not make the 4th quarter payment. However, if you underpay for the year in total, then you may have a penalty (though only on the amount by which you underpaid).
If I were in your shoes, I believe I would skip the 4th quarter payment. No need in simply trading money with the government. |
| Message: |
the previous post is correct, however, he/she is talking about state taxes not federal taxes. If you receive a federal tax refund it is not taxable. If you get a state tax refund then you do have to add it back in the year you recieve it if you itimize as they stated.
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