stupid tax rules

[tsukikage]

Why do they have to deduct my 2005 state tax refund ($146) from my 2006 federal tax refund? This sucks... :(
So, my federal tax return has been completed and filed (I have $283 coming back.) Now for the state.

[EDIT: And I just finished my state tax returns. Unfortunately, the program I was using to do my federal returns didn't allow me to do my state returns for free, and to submit my state return with a program that had both free tax preparation and e-filing I'd have to enter in all the information for my federal return again (as far as I could tell from poking around, at least), so I'm gonna have to mail in these state forms the old-fashioned way. At least my return will be direct-deposit.
So, it's $283 federal and $152 state for a total of $435 (eventually) coming my way.]

Comments

[rubyd.livejournal.com]

:( Damn taxes!!

that one makes sense

[ladyozma.livejournal.com]

Money you pay in taxes is tax exempt. So if you recieve a refund, you need to pay federal taxes on it as it is money earned tht was not taxed.

Now you explain to me why I lost 60k on a house and that ends up being 60k in INCOME. I won't be getting a federal income tax return for like the next 10 years. So be happy. :)

Re: that one makes sense

[tsukikage85.livejournal.com]

Well, okay, I can understand paying taxes ON my tax refund, but not having my tax refund DEDUCTED from this year's refund...
And... That sucks. :(

Re: that one makes sense

[ladyozma.livejournal.com]

Maybe I misunderstood. I know there's a space on the tax papers that says to put in your refund from the previous year... and then you pay taxes on it,thus making this year's refund smaller. HEHE

And yeah... sux.