59909

[#1]

The following diagnostic is generating: Per IRS guidance, TABOR sales tax refunds paid in 2023 won't count as taxable income on the 2023 tax return. Form 1099G issued by the Colorado Department of Revenue with an amount in box 2 "Income tax refunds, credits or other offsets" was proforma'd from prior year. This box 2 amount should be reduced by the state sales tax refund claimed on the Colorado Form DR 0104, line 33. I have both of these amounts. On screen 14.2, state refunds the amount of the refund appears under "Refunds Taxable in 2023 Overrides" in the second box "Income tax refunds, if itemized last year (memo only)" I have reduced this amount by the sales tax refund from line 33 from DR 0104 as per the reference and entered this amount on the line above "Income tax refunds, if itemized last year", but the diagnostic still is appearing. I am not sure how to proceed.

[sjrcpa]

Can you ignore it?

[dobrien]

It is a critical e-file diagnostic