Should last years tax return be included as an income for this years declaration?
I think you are asking if this year’s tax return should list a federal income tax refund that you got last year. If this is what you are asking, the answer is no! Over the course of the year, your employer holds back part of your income to give to the government as your income tax. The amount they withhold is a guesstimate. When the next year starts, you get paperwork from employers, banks, etc. You add up all your income, subtract your deductions, and arrive at the actual amount of tax that you *should* have paid the previous year. If your employer held back too much money, that means you get a refund of the extra tax that they kept. If your employer held back too little, then you owe the government more money. If you got a refund, that money was already completely accounted for in the previous year’s return. It is not income — it’s a repayment of money that you were overcharged. Taxes can be complicated, and different people have different situations. And you definitely don’t want t
I think you are asking if this year’s tax return should list a federal income tax refund that you got last year. If this is what you are asking, the answer is no! Over the course of the year, your employer holds back part of your income to give to the government as your income tax. The amount they withhold is a guesstimate. When the next year starts, you get paperwork from employers, banks, etc. You add up all your income, subtract your deductions, and arrive at the actual amount of tax that you *should* have paid the previous year. If your employer held back too much money, that means you get a refund of the extra tax that they kept. If your employer held back too little, then you owe the government more money. If you got a refund, that money was already completely accounted for in the previous year’s return. It is not income — it’s a repayment of money that you were overcharged. Taxes can be complicated, and different people have different situations. And you definitely don’t want t
