Dear experts,
I recently got a mail from IRS questioning why my Tax Report 2017 did not report state tax refund received in 2017 as taxable income.
As I've been reviewing all the forms and instructions I can't see why indeed this refund shouldn't be taxable.
I reviewed this help article:
https://ttlc.intuit.com/community/refunds/help/do-i-need-to-report-the-state-or-local-refund-i-got-l...And I think all conditions requiring the tax refund to be reported as taxable income have been met:
* I did use Itemized Deductions (Schedule A) in Tax Report 2016,
* And I did claim state income taxes withheld in that Schedule A,
* And this did result in an increase to the Federal Tax refund I received in 2017.
I tried to amend TaxReport 2017: downloaded the tax file and the TurboTax 2017 Desktop app, and I see that correct refund amounts are in the system, but for some reason Line 10 in Form 1040 is 0 instead of the amount of state tax refunds...
I would greatly appreciate guidance on whether this tax refund is taxable, and if it is, how do I make TurboTax put it into Form 1040 ln 10 and update any dependent lines in the report accordingly.
Thanks!
