<p>Ok I see it says this.... "State tax refunds MAY have to be declared as income in the subsequent year IF you itemized deductions on your federal tax"---which we don't/never have, so for us, it is not counted as income and needing to be taxed again. How you people undertstand all this, I will never know. What a MAZE!!! Itemizing seems to open up a whole can of worms, I am not interested in doing that no how, no way. I am perfectly happy with getting what we get back each year , even if I do let the Government use it for months. Having this many kids is what saves us at Tax time, I would not try to squeeze anymore. I guess if I made ALOT of money & was paying out the butt, I would feel different and do all of those things though. Even if I had to pay someone to figure it all out. As for us, we muddle along doing all this complicated stuff ourselves-- cause we are too cheap to pay someone to do it for us. Another reason I am starting these "Paying for College" questions EARLY because I do not want to have to hire an Accountant for Advice on filling out these forms, doing it on time, etc. I really really really appreciate all of your help !!</p>