I don't know about other states but I heard California is ridiculously taxing taxpayers on previous years' tax refund! They consider tax refund an income? If it's true, my goodness, the bird brain who came out with this ridiculous idea of robbing citizens ought to be fired!
Answer by truealaskanmom at 5:32 AM on Jan. 30, 2010
If you deducted federal taxes paid in 2008 on your 2008 state tax return, then you have to add back the 2008 federal refund you got in 2009 since it that amount ended up not actually being paid...but you get to deduct the amount you've paid in during 2009.
Answer by Anonymous at 12:34 PM on Jan. 30, 2010