Solved
State refund is not appearing as taxable income on Schedule 1. The refund worksheet Part I line C-2, needs to be checked, it uses the sales tax option. PLEASE FIX!
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Once they fix it, you may have to re-transfer your clients from 2017 to 2018 in order for the fix to be applied (In previous years with weird transfer situations that's what needed to be done).
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