A reason to not overpay taxes

[Buckshot]

I hope I am reading this wrong but I just got some information from the state that my tax refund last year is considered income and I must pay taxes on last years refund. I think Ill send them a bill along with it for lending them my money. I think weed oughta git a rope.

Yup reread it and called the tax guy. He said that your overpayment is considered income.

 

[Renee750il]

WTF????? That's insane. It was already part of what you were taxed on LAST year.

Now, if the government paid interest on it, that might arguably be income.

I think I'd get a second opinion.

 

[Buckshot]

WTF????? That's insane. It was already part of what you were taxed on LAST year.

Now, if the government paid interest on it, that might arguably be income.

I think I'd get a second opinion.

I did. It is Colorado law. In the case you mentioned only the interest would be considered income. AND yes that was double income taxation.

 

[Doberluv]

The bastards. There needs to be another revolution, I tell you. They already do double tax income all the time. Look at the inheritance tax, among other things. I think you definitely should send them a bill for using your money all year. They're nothing but thieving thugs.

 

[AGonzalez]

I did. It is Colorado law. In the case you mentioned only the interest would be considered income. AND yes that was double income taxation.

UGH, that makes me glad I never changed my residency.

 

[Romy]

Ugh. I'm so glad we don't have state income tax. It was pretty crappy in AZ.

 

[AGonzalez]

Yep, AZ got me for quite a bit, but now that I am a resident but live out of state and don't spend enough time there...no longer required

 

[Barb04]

Yep, if we got a refund in NY or CT, it was declared as income the next year. The only way to avoid paying taxes on it was to not take the refund and put it towards taxes owed the next year. This only helps if you are a person who sends in estimated payments. this is the reason my "x" and I tried to have the right amount deducted from our paychecks so we paid a little or only got back a little.

 

[FoxyWench]

its gettgin down right ridiculous, nothing but a bunch of crooks and theives they are....

 

[Zoom]

Uhh, wut??

I think I'm actually fine this year, since my last return was filed through Kansas and this year I'm not sure which way it's going to go.

Bunch of horse thieves. They can "borrow" my money with no interest and then expect me to pay double taxes on it?? How about we start using that logic on banks and credit lenders?

 

[ACooper]

Did you itemize deductions last year Buck? I don't know Colorado tax laws, (or if that is a FEDERAL law) but in Indiana, if you took the standard deduction opposed to itemizing then you don't need to claim your prior year's refund as income. Something to keep in mind when filing IF that is how your state law works.

And no, I don't think it's right either way