Maybe, if you are itemizing your return, and taking a deduction for your taxes paid, you may have to claim part of the refund as income next year on your return. However, since you are only getting a $6,300 refund and you paid in $15,900, that means you would only need to claim $400 as income on your return for next year. As your tax liability is still $9,600 for the state.
I am assuming you paid local taxes as well. So, if you have a state liability of $9,600 and a local liability of more than $400, you would hit your $10,000 SALT and that would be the correct amount claimed. In that case, you wouldn't have to claim anything on your return next year as you are not getting back in refunds more than you claimed as an itemized deduction.
Basically, if your state and local taxes that you are actually paying in or not getting refunded to you are more than $10,000, then it will have no affect on your 2024 federal taxes.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
