TP amended (in a relatively minor way) their 2007 returns (federal and California) in early 2009.
Can the 2008 returns be prepared without respect to this amendment, which can then be dealt with when the 2009 returns are filed?
Steve
I think if a state tax refund gets paid in 2009, it is relevant to an individual's 2009 federal taxes only. So that would be yes. Not a pro, but I am pretty sure.
What I don't know is whether such a refund is considered taxable income, on the 2009 return, is based on whether the person itemized in 2007 or in 2008. 2007 seems logical, but ....
I don't understand the question. What's the issue involved?
For example, if the amended state return resulted in a refund issued in 2009 that's something to deal with on the 2009 return. OTOH, if the amended 2007 affected a carryover to 2008, it should be reflected on the original 2008 return.
I think you're answered my question; if there is a carryover issue, 2008 may need to be prepared taking the 2007 amendments into account; otherwise the 2007 amendments can be ignored for 2008.
Steve
Not if the 2007 change affects the 2008 computation of something.
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