Just tried 2 paths from the step 4 :
Yes -> directly goes to "Good News! Your 2022 refund is not taxable"
No -> after ~10 more small steps requiring numbers in 2022 1040 & schedule A (most of which were autofilled), the second last step shows correct
"State and Local Taxes after Limitation (line 5e) " (10,000)
and "Total Itemized Deductions (line 17)" (more than 10,000) ;
and now there are two choices buttons other than "Back" :
"Make My Full Refund Taxable" or "Continue".
"Continue" just gave me "Good News! Your 2022 refund is not taxable", which is great.
Does everything look fine here? I definitely don't want to go for "Make My Full Refund Taxable" unless it's absolutely necessary.
In any case, this part is confusing and unreasonable to me, because 2022 tax refund from state and local was due to me paying more taxes in 2022, and if federal is taxing on that, then it's basically a penalty for paying more tax, which sounds quite contradictory.
