All this tax talk has me wondering

[stressedNC]

[QUOTE=PdxDavid;307400]Not sure if it is the same everywhere or not, but here in Oregon we are taxed on our federal refund the next year. Seems odd I am paying taxes on money I am getting back from overpaying my taxes. /QUOTE]


Does Oregon tax before fed is withheld or after? Maybe they the tax after fed is withheld so you haven't actually paid taxes on it yet? If not then that is crazy!
I know we have to count our NC refund as income the following year on our Fed returns because we don't pay taxes on it when it's withheld.

[PdxDavid]

Now that's a scam if I ever heard of one. That's a double-jeopardy situation. You can only one one income. Whomever is running the show in that district is a scammer.

Not sure if it is the same everywhere or not, but here in Oregon we are taxed on our federal refund the next year. Seems odd I am paying taxes on money I am getting back from overpaying my taxes. It may be just the state that taxes us on it again, but I could have swore I already paid taxes on that money when I made it the first time. Thanks taxman. You're swell.

[debtmonster]

However, there are a few courts that have stated the refund is income and you must count it.

Now that's a scam if I ever heard of one. That's a double-jeopardy situation. You can only one one income. Whomever is running the show in that district is a scammer.

[lrprn]

Regretfully whether you have to count your tax refund as income in your six-month lookback depends on local court custom. Fortunately most courts see the refund as money you've earned that is already included in whole or in part in your six-month lookback. However, there are a few courts that have stated the refund is income and you must count it.

If you are filing with a lawyer, then he/she is familiar with the local customs and can give you the answer to your question.

[stressedNC]

Does our refund count as part of our 6 month income? If it does we will be over the median and we can not pass the means test(yet we are negative every month on I and J). We are set to file Thursday but I will call the lawyer Monday and see if we should reschedule for Sept. 1 if it is included(it was received in Feb.). I hate calling though because to talk to the lawyer it is billed and I keep getting warned not to listen to the paralegal who is the one our questions are handled by.

We will probably be paying this year(on 80K income we have paid 250.00 YTD for federal) so I am not concerned with them having an interest in the 2009 refund since I know there won't be one.

Also if it makes a difference, I worked in 08 and we filed our taxes jointly but I no longer work and I am not actually filing bk all of our debts are in my husbands name so he is the only one actually filing even though it feels like I am since I handle everything. The refund was 1029.00 federal and 588.00 state(NC) and was used to pay other taxes, hoa dues, debt, ext.

A month of waiting is worth it if it means we aren't above the median, IMO.
Thanks,