Income Tax Refund Taxed as Income?

[ulmont]

I wonder if all those people complaining about how complicated our taxes are in Germany know that you have to pay taxes on both state and federal level in the USA.

In some cases, state, federal, and city.  And if you earn income in multiple states during the year, multiple states and federal.  Partners in large firms (who earn income in any state where the partnership has an office), or professional athletes, end up filing in practically every state.

[Admiral Yi]

Marty, for your analogy to work a robbery would have to reduce your tax liability.  Then it would make perfect sense for it to go back up when you're unrobbed.

[Admiral Yi]

Question: what do all those people who staff the kwiki tax prep places do the rest of the year?

[Caliga]

Question: what do all those people who staff the kwiki tax prep places do the rest of the year?

Most of the time they're temps... so I guess they try to find other temp gigs.  I assume you're talking about H&R Block and stuff, right?

[Admiral Yi]

Most of the time they're temps... so I guess they try to find other temp gigs.  I assume you're talking about H&R Block and stuff, right?

And the folks at Wallie World.

[grumbler]

It's an equivalent of getting robbed and then having to pay tax on the money the thief gives you back.

Your analogy is like a rectum during constipation:  strained and full of shit.

[Caliga]

Most of the time they're temps... so I guess they try to find other temp gigs.  I assume you're talking about H&R Block and stuff, right?

And the folks at Wallie World.

Oh, Wallie World is that "Jackson Hewitt" chain, right?

IIRC H&R Block makes you pass some basic course first, so they're not literal temps in the sense that the regional H&R Block manager calls OfficeTeam and says "Hey, I need ten people here tomorrow who can do data entry into a tax program."  I have no clue about the Walmart operation but it may be similar.

[crazy canuck]

It's an equivalent of getting robbed and then having to pay tax on the money the thief gives you back.

No, it's not.  It's the difference between the two sovereigns and their respective taxation schemes.  The state doesn't tax you on the money that you paid to the federal government, but does tax you on the money that you *didn't* pay to the federal government.

Careful,  in Marti's world there can only be one indivisable Sovereign.  Kind of like God only with the additional power to tax.

[Jacob]

Yeah.  States could either tax gross income and set the tax rate lower or tax net income and set it higher.  If they tax net income then including the refund makes perfect sense.

Yeah, it does make sense to me now that I've had it explained.  Thanks

[MadImmortalMan]

Question: what do all those people who staff the kwiki tax prep places do the rest of the year?

Most of the time they're temps... so I guess they try to find other temp gigs.  I assume you're talking about H&R Block and stuff, right?

Some of the CPAs at my company do that--they have normal beancounter jobs in our finance department and then they moonlight doing tax returns during the season.

[Caliga]

Interesting... I wonder if any of our accountants do that.  I work on the same floor as most of the corporate accountants so I'll ask around.  I'm 100% certain you do not need to be a CPA to work at an H&R Block however.

[Zanza]

In some cases, state, federal, and city.  And if you earn income in multiple states during the year, multiple states and federal.  Partners in large firms (who earn income in any state where the partnership has an office), or professional athletes, end up filing in practically every state.

When I worked in New York State, I only filed income taxes at the IRS (in Philadelphia though) and not in New York State. I wonder if I missed something.  But then I didn't have to pay taxes under some double taxation scheme anyway. 

[Admiral Yi]

When I worked in New York State, I only filed income taxes at the IRS (in Philadelphia though) and not in New York State. I wonder if I missed something.  But then I didn't have to pay taxes under some double taxation scheme anyway. 

International fugitive. 

[Zanza]

I was in the US twice after that and they didn't arrest me, so I guess it should be fine.

[grumbler]

In some cases, state, federal, and city.  And if you earn income in multiple states during the year, multiple states and federal.  Partners in large firms (who earn income in any state where the partnership has an office), or professional athletes, end up filing in practically every state.

When I worked in New York State, I only filed income taxes at the IRS (in Philadelphia though) and not in New York State. I wonder if I missed something.  But then I didn't have to pay taxes under some double taxation scheme anyway. 

New York State very likely has compulsory withholding of state taxes, so you probably paid the taxes, just didn't file a return.