Last year, for 2010, we sent in to the State of Arapaho our taxes and were due a refund of $314. We were late getting it in due to the federal government inexplicably doing a system update in October that rendered some necessary tax documentation inaccessible. I was informed that, as long as you’re talking refunds, it didn’t matter that you were late. Now, it took the IRS a while and several phone calls to get us our money, but we got it.
As far as Arapaho is concerned, though, they don’t owe us anything. They had a record of the $314, but… simply did not feel obligated to pay it. Was that because we were late? They wouldn’t say. But they did not owe us the money, as far as they were concerned.
Last year, we owed Arapaho money. The $314 did not count towards what we owed Arapaho, because that money apparently went into an ether.
It resurfaced last week. Arapaho finally admitted that they had an outstanding debt to us of $314.
What changed their mind about this? They wanted to make sure – even though same documentation said that we may not have actually received it – that we paid taxes on this “income.”
Leave it to the Truman-Himmelreich household to somehow lose money on a tax refund.
State income tax refunds are income to report on form 1040 if they are a refund of taxes previously taken as an itemized deduction.
Have you actually received a check for the $314?