#Good news! The IRS has extended the tax deadline to April 18th! As long as you submit your federal return by midnight on 4/18/2018, you won't be considered a late filer for your federal return. Direct debit tax payments that are submitted with your federal return (or on the IRS website) by 4/18 are also considered timely filed ×

Am I being double taxed?

While the state refund tax sounds unusual, it’s not a double taxation. Let’s say you itemized your state income taxes on your 2016 tax return but received a refund for the year in 2017 (after you filed your 2016 return).

Because you received a refund, you technically overstated your state income tax deduction on your federal return, and you paid less in federal taxes on your 2016 than you should have. As a result, your state refund could now be taxable.

That said, if you took a standard deduction last year or itemized sales tax instead of state income tax, your state income tax refund isn’t taxable.

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