Re: Taxes
If you are unfortunate enough to live in a state with income tax
, when you file your federal taxes, you deduct the amount withheld for your state tax (through your payroll deductions). When you file your state tax return and get a refund, then what you indicated on your fed tax return is technically no longer correct (sort of). You need to make an adjustment for it on your next years fed return. The same applies if you owed more, you can deduct the additional amount paid. The idea goes that the amount paid in state tax is not income and is therefore deducted from your federal taxable income (for most states). Always, contact a licensed tax professional for advise or use a program like Turbotax. We here at iboats like to help but are not always certified to help, though most of us are certifiable
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