Taxpayer received two State tax refunds in 2022 - one for their 2021 return and a second for an amended 2020 return. I'm thinking there should be separate worksheets for the State refunds taxable in 2022 but Lacerte is only giving me one, which includes the combined total of both refunds.
Taxpayer deducted sales tax in 2021 but income tax in 2020. I do not believe the 2020 refund to be taxable but I was hoping Lacerte would generate a separate worksheet for the 2020 refund. What am I thinking / doing wrong?
Thank you.
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There may be a worksheet in the amended 2020 file.
Or just pull one from the 1040 instructions and fill it out.
Only an actual SALT above the limit would be offset by a refund:
Taxpayer's SALT paid in 2020 (Sch A line 5d) was $50K.
Amount deducted was $10K (Sch A line5e).
Refund on the amended State return is $15K. It's nontaxable because $15K is less than $40K (the excess SALT paid over the SALT deducted).
I was hoping Lacerte would spit out a worksheet for that. Am I lost or what?
There may be a worksheet in the amended 2020 file.
Or just pull one from the 1040 instructions and fill it out.
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