[QUOTE=ralphie;53502]
Originally Posted by
asandahl
Your state refund if you get one would be taxed by the feds since they didn't get their hands on it the first time around. State taxes are used as a deduction so the feds couldn't tax you on it for that tax year. You would need to be using itemized deductions for this though. If you don't itemize your deductions and you're reporting the refund as income or if you have been reporting your federal refund you should probably have a professional look over your taxes.
Your best bet is to make sure you have to pay in just a little at tax time. Let the government give you an interest free loan for a little while.
You and asandahl and anyone else can file taxes any way you all like. It's up to each individual. But, I can tell you this in my 45 years on this earth I have worked for mom n pop operations, big national corporations, local companies, myself, and the United States Govt. and NEVER have I paid taxes on ANY refund. Not federal, nor state. If you are paying taxes on refunds then you are doing something very wrong.
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