The 10,000 would be 5,000 if you filed Married Filing Separately in 2022.
1. Yes, if line 5d is more than 5e, your deduction was limited.
2. Not quite.
Not line 7, line 5d
Your 2022 Schedule A line 5d shows the state tax you paid before the SALT limit, then 5e might reduce the amount on 5d to 10,000 because of the SALT limit. If the amount listed on line 5d is more than 10,000 + your refund, the refund is not taxable.
3. Did you have more tax listed on line 6? For the SALT limit and state refunds, we look at line 5d.
Line 7 is USUALLY the same as line 5e, but you must have claimed foreign tax or something else.
The point is, if there was state tax that you paid, but could not claim (because of that SALT limit) then a state refund in the amount of (or less than) the tax disallowed is not taxable.
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