Originally Posted by
tunes
while you are 100% correct, i enjoy getting a refund instead of writing a check...even though i know i gave the government an interest free loan.....what i do think is complete BS is that if I get a refund from the state (which is my money that I've over paid) that it's treated as income the following year.
It’s treated that way because you took it as a deduction in the prior year. With the new 10,000 cap it will happen less often. If they did not have that rule everyone with two touching brain cells would increase their state tax withholding to the maximum possible since you will get it all back when you file and avoid a bunch of federal income tax.