Tax Refunds

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Why Does Iowa Tax My Federal Tax Refund?

By | August 29th, 2018|Categories: State Taxes|Tags: , |

While it's annoying, it's not "double taxation," and there is a logical explanation for why Iowa makes you claim federal refunds as taxable income.

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What is the Tax Benefit Rule?

By | January 31st, 2018|Categories: Potpourri of Tax Topics|Tags: , , |

In tax terminology, the phrase “tax benefit rule” refers to whether or not a refund or recovery received in a future year is taxable. For example, whether or not a state income tax refund is taxable on your federal return depends on the “tax benefit rule.”

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Allocating Estimated Payments for Taxable Refund Calculations

By | March 21st, 2017|Categories: Potpourri of Tax Topics|Tags: , |

When a taxpayer receives a refund of state income taxes, and the taxpayer took a deduction on their federal tax return, and some of the payments made to the state were estimated payments that may have been made in a different calendar year ... well, it can require some math to determine the taxable refund and the deductible portion of the estimated payment.

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Same-sex Marriage and Paycheck Withholdings – An Unpleasant Surprise on 2014 Tax Returns

By | June 18th, 2015|Categories: Potpourri of Tax Topics|Tags: , , |

Some people in same-sex marriages received an unpleasant surprise on their 2014 tax returns, because of changes in paycheck withholdings.

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Sorry, But There Really Isn’t a “Gray Area” for Most Taxpayers to Push

By | January 7th, 2015|Categories: Editorial Commentary|Tags: , |

For the average taxpayer, there are few if any gray areas to push on a tax return.

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