PhoebeRoberts
Level 11
Level 11

Hi there,

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Cheers!

Assuming you're actually preparing someone else's return, the input for determining the taxable portion of state refunds is complicated. I find it easier to recreate the prior year return and let the software proforma the information needed for the calculation. How much tax benefit did your client get from the refunded taxes on their 2023 return?

For the 2022 piece that you know isn't taxable, just don't enter it.