206.265 Credit against tax; determining amount; eligibility; limitation; refund.

235 words·~1 min read·/mi/chapter-206/206-265

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

Sec. 265.

(1)For the 1989 tax year and each tax year after 1989, a taxpayer may credit against the tax imposed by this part for the tax year an amount equal to the tax paid in any prior tax year attributable to income received by the taxpayer in any prior tax year and repaid by the taxpayer during the tax year if the taxpayer is eligible for a deduction or credit against his or her federal tax liability pursuant to section 1341 of the internal revenue code based on the repayment for the tax year. A credit under this section for a tax year is allowed only if the repayment for which a deduction or credit was taken pursuant to section 1341 of the internal revenue code is not deducted in calculating the taxpayer's adjusted gross income for the tax year.

(2)If the credit allowed under this section exceeds the tax liability of the taxpayer for the tax year, that portion of the credit that exceeds the tax liability shall be refunded.

History: Add. 1993, Act 128, Imd. Eff. July 22, 1993 ;-- Am. 1998, Act 19 , Imd. Eff. Mar. 12, 1998 ;-- Am. 2011, Act 38 , Eff. Jan. 1, 2012

Compiler's Notes: Enacting section 1 of Act 19 of 1998 provides:“This amendatory act is effective for tax years beginning after 1988.”