Received a refund of our state taxes last year. Itemized deductions. Expected that this year -- like in all previous years -- our state tax refund would be taxable. Checked the box saying we'd itemized deductions - that we did not use the standard deduction - and the determination came back that our refund is NOT taxable. I find it hard to believe. Is this an error in the software? Or are there other factors that influence this determination? Yes -- the amount of taxes we paid the state exceeded -- by quite a margin -- the $10,000 cap. I'm nervous. Don't want to assume our refund will not be taxable .. file and then discover down the road that it should have been. And that there was an error in TurboTax.. that the software mis-interpreted my "I itemized deductions" as "I claimed the standard deduction". Thanks!
