I'm making my final pass through my taxes.. hopefully...
I have an entry for a tax refund from another state. After entering initial numbers, it asks about whether I took standard or itemized last year, I itemized. It then brings up a summary of some numbers from last year's 1040. (From where it got them, I don't know because I didn't use TT last year.) And, it asks if the numbers are correct. No, they are not. I select No and it wants to see if the other state's refund is taxable. It then asks if box 5a is checked, Yes, and wants me to enter what I paid for State and Local Taxes in 2023.
So... now the confusion... line 5a is only the state and local sales taxes I paid in my home state. Line 5b is real estate taxes I paid in my home state and 5d a total of those. Then line 5e is $10,000 (apparently the max the IRS allows).
I am confused as to what TT is asking for at this point. Does it want only what is on 5a? Or the total on 5d? Or something else? I have entered both numbers and proceeded and it just tells me that I don't have to pay taxes on the refund.
I can go with it either way and may this is just so it can do a calculation... but also, on the question about last year's 1040 numbers, the AGI is WAY OFF, showing a negative value and doesn't offer for me to correct it! Does TT not care what that number is, but only the state a local taxes paid?
Thanks in advance!
Well, I went a bit further, and it's giving me the following message. I have NO idea what this means... paying part of your 2023 taxes in 2023'. As far as I know, I paid ALL my 2023 taxes in 2023. And reducing my itemized deductions by $6730?!? Arrgh! LOL What is going on?
One more thing... I can't help it... When it asks me if I took standard or itemized last year, in RED it says "(Recommended)" next to Standard. Why would it say that? Why not just let someone answer whatever the truth is? 😕 It could be misleading...
