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What is the tax benefit rule? What is the Tax Benefit Rule?

What is the tax...

What is the tax benefit rule?

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What is the Tax Benefit Rule?

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Answered in 5 minutes by:
3/24/2018
PDtax
PDtax, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 5,013
Experience: 35 years tax experience, including four years at a Big 4 firm.
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Customer reply replied 1 month ago
Good morning

The tax benefit rule allows that refunds or additions to income are only taxable to the extent those items created a tax benefit in a prior year.

An easy example is a state tax refund received from last year's taxes. If the taxpayer did not itemize in the prior year, the refund saved $0 tax dollars, so the refund is not taxable.

I see you are online. good morning. Please review and ask any follow up.

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Customer reply replied 1 month ago
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PDtax

PDtax
PDtax, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 5,013
Experience: 35 years tax experience, including four years at a Big 4 firm.
Verified
PDtax and 87 other Tax Specialists are ready to help you
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Customer reply replied 30 days ago
Stop Contacting me. We are finished. I doubt that I will ever need your input again. Cancel any memberships I may have enrolled in.Ronald E. Antlitz M.S.* CPA
*M.S. in Taxatio
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PDtax, Certified Public Accountant (CPA)
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Experience: 35 years tax experience, including four years at a Big 4 firm.

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