I filed my 2015 State tax return in Oct 2016 (with extension) -- with the over payment to be applied to 2016 State taxes. However, the State sent me a bill claiming I owe them taxes -- because they eliminated a tax credit that I qualified for. I responded with a "protest" of the bill; and show them why I am entitled to the credit. They asked for more info. 3 mos later, I found that they lost my mailed info. Long story short, on 3/7/2017, they finally informed me that the "Overpayment of tax allowd to next period $xx". And they also send me a cash refund of $yy [because Turobtax missed a credit that I qualified for -- TT has a quirk that they never fix, which I found out this year because TT again didn't put in that credit.]
So my total refund for 2015 is $xx+yy [= $zz].
I have filed my 2016 Federal tax return *without* the State Refund. I have not yet filed my 2016 State return yet. I assumed when I filed my 2016 State return, the $xx will go into the calculation of how much I overpayed this year???
My next question is: Do I need to amend my 2016 Federal tax return -- depending on which year I am deemed to received the State tax refund -- 2016 or 2017. [I itemized my deductions on the Federal returns; but State income tax/refund has no impact on the State tax returns.]
TIA