I amended a state tax return for the 2020 tax year in 2022 and received a refund of $256 in tax year 2022. I took the standard deduction in Federal 2020 taxes so it is my understanding that this should not be counted as Federal Income in 2022. However, when I entered the $256 refund in TurboTax (and identified it as from the 2020 tax year in the drop down menu), TurboTax Premier tagged it as taxable income. TurboTax asked if I took the Standard deduction in 2021, but didn't ask anything about 2020. TurboTax is recommending that I take the standard deduction again in 2022, but it is still counting the refund from the amended 2020 return as taxable income.
Is this refund really taxable income or is TurboTax counting it as taxable income in error?
Jim
