MN Property Tax

[littleman]

I am preparing my 2005 federal and Minnesota tax returns. I received a property tax refund in 2005. Do I include this on my federal return similar to how I report my state income tax refund from my 1099-G?

Additionally, my Property Tax Return from 2002 was audited. My return was in 2002 was prepared incorrectly and I was issued a refund of $150 too much. I had to pay the $150 (plus interest/penalty) back in 2005. Is this deductible?

Thanks!

[Armando Beaujolais]

I am preparing my 2005 federal and Minnesota tax returns. I received a property tax refund in 2005. Do I include this on my federal return similar to how I report my state income tax refund from my 1099-G?

Additionally, my Property Tax Return from 2002 was audited. My return was in 2002 was prepared incorrectly and I was issued a refund of $150 too much. I had to pay the $150 (plus interest/penalty) back in 2005. Is this deductible?

Thanks!

Assuming you filed for and received your property tax refund in 2005, you reduce your 2005 property tax deduction by the amount of the refund.

Yes, the additional tax paid in 2005 is deductible in 2005.

[Lam]

MN Prop Tax

I too live in MN. If I understand correctly, the Prop tax rebate is reportable only if it was deducted on Sch A last year. If the TP filed a 1040EZ/A etc without itemizing deductions, then it need not be reported on the 1040 line 21. Repost a question if this does not answer your question.
Lam