sjrcpa
Level 15
04-07-2024
07:14 PM
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They are not subject to tax on $19,800.
They are only subject to tax on the amount of the refunded tax that generated a tax benefit in 2022.
This is a basic concept and you are not grasping it.
Try rerunning last year's tax return without the $20K tax payments. How much, if any, did their total federal tax change?
The more I know the more I don’t know.