Since 8960, Line 7 is to be used in the year of the recovery, I am not sure I know which recovery. State or Federal?
I received my state tax refund in 2021 for 2020. I received my federal tax refund in 2022 for 2020. Since Form 8960 is for Federal taxes, I assume they are telling me to put this recovery on my 2022 taxes since that is the year I received my 2020 Federal refund.
Am I correct?
