Thank you for your response. I have that Line 7 worksheet in front of me. The questions are not very clear and I cannot find anything that explains them. Line 2 asks for the amount of recovery that would have been included in gross income...
I received a state refund of $7193. Had I itemized, that would have needed to be on this year's Form 1040, SCH 1, Line 1. Since I did not itemize, I did not do that.
Form 8960, Line 7 is for a deduction recovery as a result of making a deduction in a prior year. My deduction in a prior year was $3495. So, I believe that amount is my recovery for Form 8960's purpose. I am just trying to find something that verifies this.
