At the end of 2003, I was sent an invoice for a VLF fee that I paid. A couple of months later, I received a refund for most of the amount. However, I did take the full deduction in 2003. I'm using Turbo Tax to do my taxes this year. I reported the VLF refund as "other income" on the federal since I couldn't find a better place for it. On the CA return, Turbo Tax has an explicit category for VLF refund. If I check that and enter the amount, I'll probably be double taxed on that amount. How should I handle this? Should I just ignore the VLF refund question in the state return? Thanks in advance for any help with this.
Anoop