Why is it saying “Do you want to recalculate the taxable portion of your refund?” Does that mean I have to submit amended taxes for 2016.

[mcdaniel2018]

Entered in my state refund in the income section like it says to and then got the notice of recalculating so I followed the steps in 2016 TurboTax to make changes but now my question is that it changes the 2016 state to zero on changes my federal slightly does that mean I have to refill/amend my 2016 taxes or how does that all work. I’m really confused by this notice haven’t seen it before. 

[Anita01 · Accepted solution]

No, you do not have to amend your 2016 return.  The calculation is only intended to determine if the full amount of the refund is taxable when you paid AMT in the prior year.  State tax deductions are added back to your income when AMT is calculated but that does not necessarily mean that the entire refund is nontaxable this year.  It depends on how much that addback actually affected your AMT.  The questions and the amounts you enter are used to determine how much of your state refund is taxable this year based on how it affected your AMT in the prior year.

[dashJosh]

Why doesn't TurboTax calculate this? They already have all that information.

Are they just trying to upsell?