Sign up, and you can make all message times appear in your timezone. Sign up
Jan 30, 2015
6:37:53am
Don't quote me...
But this seems to indicate that state tax credit reduces your state tax expense deduction for the year, but is not considered taxable income for federal purposes.

http://www.irs.gov/pub/irs-wd/13-0009.pdf

"Generally, a state income tax credit is treated for federal income tax purposes as a reduction or potential reduction in the original recipient’s state tax liability to the extent that the taxpayer can only apply the credit against a current or future tax liability. Consequently, an original recipient of a state income tax credit is not generally treated as having an accession to wealth that results in gross income under section 61. Additionally, when an original recipient of a state income tax credit applies the credit to reduce a state tax liability, the taxpayer has a lower deduction for state tax under section 164 of the Code."
This message has been modified
Originally posted on Jan 30, 2015 at 6:37:53am
Message modified by Fdnman on Jan 30, 2015 at 6:39:04am
Fdnman
Bio page
Fdnman
Joined
Sep 5, 2002
Last login
Mar 29, 2024
Total posts
33,615 (484 FO)
Messages
Author
Time

Posting on CougarBoard

In order to post, you will need to either sign up or log in.