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Level 3
March 28, 2024
Solved

Nebraska has a property tax credit that is refundable after the income tax withheld credit. When itemized deduction is used in prior year should this refund be taxable?

  • March 28, 2024
  • 1 reply
  • 6 views
It seems that the refund of the credit should not be taxed the following year. ProSeries automatically brings the refund to the current year and adds it to income. Has anyone had experience with this and should a work around be used?
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Best answer by sjrcpa

It is taxable to the extent they received a tax benefit from deducting real estate taxes. Same as for state income tax refunds.

1 reply

sjrcpa
sjrcpaAnswer
Level 15
March 28, 2024

It is taxable to the extent they received a tax benefit from deducting real estate taxes. Same as for state income tax refunds.

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