I will be itemizing for this year's taxes (2009 sched A) and will include a deduction for paid local taxes. However, I will be getting a refund of withheld state taxes.
What is the simplest way to avoid future correspondence (which always fills me with dread) with the IRS?
I am afraid that if I do not claim the state taxes on the 2009 Schedule A, when the IRS gets the copy of the 1099G from the state they will ask me why I didn't include that amount on the 2010 Form 1040. I can explain, of course, but I REALLY don't like having to explain things to them, since only SOME of the people there seem to have a brain (prior experiences).
Should I include the state taxes in the schedule A deduction and then just include the tax refund on the following year's Form 1040, when I get the 1099G from the sate?
Y