Quote:
Originally posted by ThurgreedMarshall
Speaking of tax cheats, someone please explain to me, if I earn $100,000 in 2004 and the Government withholds more than it should from my paycheck, but I am taxed based on the $100,000 amount, how I am also subject to taxation on the refunded amount in 2005? Why is this not considered double counting?
I earned that money in 2004, they taxed me based on my full income in 2004 and now they tax me on the amount they withheld that was more than what they should have and they consider it new income?
I don't get it.
TM
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Same taxing authority? I have this every year with reporting the refund of state income tax as "income" the following year on the federal return. It's because I took a deduction for the withheld amount of state income tax the prior year. If it's the same taxing authority doing that to you, I'm no help.
