Hello,
The state income tax refund always confuses me.
In 2022, I had $10,453 in state income taxes that was limited to $10,000 due to the SALT cap.
I had $7,476 in interest expense and $600 in charitable contributions.
Therefore, all in all, I had $18,076 in charitable deductions.
This year, I received a 1099-G for $691. Is that $691 refund taxable?
Last year? Yes, 2022 info below:
Real Estate Taxes: $1,917
State income taxes: $8,536
Total State Taxes = $10,453
Refund listed on 2022 1099-G: $691
This line is wrong:
<<Therefore, all in all, I had $18,076 in charitable deductions.>>
(Maybe 18076 in itemized?)
The refund worksheet will calculate that only X% of the income taxes paid were really deducted (10000 / 10453 = 95.6%) and since 8536 /10453 was the income tax piece of the total, x 95.6% was deducted, depending on the Std Deduction for your TP, only 81.67% X 95.6% of the $691 refund is taxable income.
I think?
Yes, $18,076 in itemized; sorry - I was multi-tasking.
Use the resources of the program. Did you complete the State Refund Wksht?
I'm actually using a different software; I just love the feedback from thsi community.
Then use Google to work it out.
https://apps.irs.gov/app/vita/content/globalmedia/state_and_local_refund_worksheet_4012.pdf
Then use the worksheet in your software.
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