When determining if 2018 tax refund is taxable TT asks, "Enter the amount of 2018 state and local taxes paid." Is that the amount on line 5a, 5d or 5e and why?

[d-bechar]

I've seen conflicting responses where one stated 5a and the other stated 5d, which has a significant impact on the result so it needs to be correct.

[Texas Roger · Accepted solution]

You enter the amount on line 5a of your 2018 Schedule A for determining how much of your state refund is taxable. 5d would not be correct because that is the sum of state and local income taxes, real estate taxes and personal property taxes. You only want a comparison of state and local income taxes. 

[d-bechar]

Thanks @Texas Roger. That was helpful and I think the wording in TT should be updated to make this entry a bit more clear or just state or reiterate the value should be line 5a from Schedule A.

[SIEGA91487]

As of TT 2024 the wording is the same, and still would be helpful if it were clarified.