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Dobagoh t1_j7s8k54 wrote

Reply to comment by wkomorow in IRS May Tax Massachusetts Refunds Sent In 2022 Under 62F Law by Lilslugga2002

Yea, what’s so complicated about this?

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frankybling t1_j7se9z5 wrote

not even a little confusing and for once the explanation makes sense

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NativeMasshole t1_j7soov1 wrote

I just don't understand why it would count as income again. The state tax doesn't get deducted on federal taxes, so you already paid federal taxes on it when you earned the money in 2021. Is it just because it could impact how your itemized deductions were calculated? Is that why it's not applicable for the standardized deduction?

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wallet535 t1_j7spm8n wrote

If you itemize, yes, you can deduct state taxes withheld (and paid) from federal taxable income. That’s why state refunds are added back to your federal taxable income the following year. It’s not relevant if you take the federal standard deduction.

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wallet535 t1_j7sqysn wrote

I think what’s complicated is they’re wondering if this Chapter 62F payment was truly a state tax refund within the meaning of the relevant parts of the Internal Revenue Code, and if it wasn’t, then was it a government payment more like, say unemployment benefits?

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Zaius1968 t1_j7vwri2 wrote

Still taxable then whether you it’s used or not. If a refund only if you itemized.

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