THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Friday, January 27, 1995 TAG: 9501270009
SECTION: FRONT PAGE: A12 EDITION: FINAL
TYPE: Letter
LENGTH: Short : 25 lines
Regardless of whether a person views the proposed Virginia state-tax-refund settlement with federal retirees as a positive or a negative, there is one consideration that most seem to have overlooked.
Many retirees who elected to itemize deductions in prior years may be required under the federal ``tax benefit rule'' to pay back substantial federal income tax on the Virginia state refund payments when received.
Therefore, the estimated 70 percent-plus refund monies may be reduced by payments to the federal tax collector.
Interesting merry-go-round from one tax collector to another.
JOHN W. KERR JR.
Virginia Beach, Jan. 17, 1995 by CNB