state income tax is not deductable, why is refund taxable?
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State income tax IS deductible, but may be limited due to SALT.
THAT limitation may act to limit, or eliminate, the taxable amount of the refund.
PEBKAC?
Check this from IRS for more info.
https://www.irs.gov/newsroom/with-new-salt-limit-irs-explains-tax-treatment-of-state-and-local-tax-r...
If you fill out the state refund worksheet correctly, the amount will be calculated for you.
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Are you saying general sales taxes were used in the as d of state taxes
Instead of
