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State refunds for 2019 & 2016 on 1099-G causes reduction in Schedule A deductions. Why?
Got a 1099G for state tax refunds for 2019 and 2016. Entered separately. Since we itemized both yrs, these are apparently taxable, but why does it reduce Sch A deduction for 2020? (Note that we did pay $1000 w our tax extension for 2019.) TT says:
"Because you pd part of you 2019 taxes, in 2020, we will reduce your state tax itemized deduction on Schedule A, Line 5 by $514."
We also sent a payment w our 2016 extension, but it didn't ask about that.
Thanks for any help.
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March 8, 2021
4:56 PM