Property tax refund

[Evonne Winegarner]

Hello,

 

Client paid excess property taxes in 2022, claiming them on their schedule A.  In 2023 they received a refund.

 

There was a very slight impact from these taxes on their federal Schedule A due to the SALT.  They impact CA in full.

 

How do I report this income?  Is it a reduction of 2023 Schedule A (return was extended) or does it go as Misc Income to Schedule 1?

 

Thank you.

 

 

Evonne Winegarner

 

On behalf of

Eric P. Martin, CFP, EA and Ryan Duncan Anderson CFP, EA

Martin, Wardin & Eissner Financial Group

480 Saint John Street, Suite 120

Pleasanton, CA  94566-6597

Tel: 925-484-1053

Fax: 925-484-4773

 

 

 

[PHILIP P STORRER]

Evonne a refund of a previously deducted item is taxable in 2023 to the extent that the TP had received a tax benefit from the deduction claimed in 2022…

I understood you to say you that the benefit was “slight”.. So that “slight” amount, properly calculated is reported as miscellaneous income in 2023… 

Sec: https://answerconnect.cch.com/document/arp2834acbf127b6810009980001b78be8c7809dCOPY/federal/irc/explanation/111-tax-benefit-rule#:~:text=The%20purpose%20of%20the%20tax,prove%20to%20have%20been%20erroneous.

Hope this helps

Phil 

Sent from my iPhone

On May 15, 2024, at 11:22 AM, Evonne Winegarner <ewine...@mwefinancial.com> wrote:



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