Accounting question re tax refund

[Roland Roberts]

Michael DeBusk wrote:
> Your tax refund is definitely not income, and if it were, it would be
> LAST YEAR'S income. If you like to close your books at the end of the
> year, this matters.
>   
Hmm, since the original poster was not from the USA, I'm not sure if how 
it works here is relevant.  But...

I received a refund from the State of New York in 2007 for the 2006 tax 
year.  On my 2007 tax forms, I had to enter that refund.  It has a 
special place on the form, but it effectively gets counted as income for 
2007.  The reason for this is that it was not counted in 2006 (they 
don't tax you on taxes).

roland

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