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This Web site contains a compilation of more than a thousand consumer finance  columns written by Tony Novak from the 1980s through 2006, updated and reformatted for maximum usefulness today.  New material was added after 2010.

Content is the opinion of the author and does not represent the position of any other person or entity. Information is from sources believed to be reliable but cannot be guaranteed.

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State income tax adjustment

originally posted: 11/22/2006  reposted: 2/18/2011 This post has not been recently reviewed or revised by the author and may be out of date. If in doubt, please send a new question or ask for an update.

Q: The state sent a bill saying that I owe additional tax for 2004. What is this about?

A: This is a common situation. State income tax calculations do not allow all of the deductions taken for federal income taxes and some of those deductions were missed when your taxes were originally filed. Whenever there is any doubt, it generally makes sense to take the same deductions on your state return as on your federal return and then pay the balance due on the state income tax return when adjusted. There is no penalty or interest involved in this case. So you probably handled it the best possible manner, so there is no reason for concern.


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