mollyanna58
Junior Associate
Joined: Jan 5, 2011 13:20:45 GMT -5
Posts: 6,733 
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Post by mollyanna58 on Apr 7, 2013 15:09:25 GMT -5
I help a friend do her taxes on TurboTax. She qualifies for the EIC on both the federal and state returns. When TT carried forward her state refund from last year, it showed $146.00, but she actually received $930.00 for her state refund. I'm wondering if the difference is the EIC, and maybe it's not taxable on this year's federal return?
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mwcpa
Senior Member
Joined: Jan 7, 2011 6:35:43 GMT -5
Posts: 2,425
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Post by mwcpa on Apr 7, 2013 19:41:46 GMT -5
State tax refunds are only taxable to the extent there was a benefit from a deduction for the tax payment. I would venture to guess that this refund is not taxable.
state tax refunds can include actual withholding plus the eic, which may explain the difference.
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mollyanna58
Junior Associate
Joined: Jan 5, 2011 13:20:45 GMT -5
Posts: 6,733
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Post by mollyanna58 on Apr 7, 2013 19:43:49 GMT -5
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