DMarkM1
Expert Alumni

After you file

No, you are not going to directly reduce the property (real estate) taxes entered from your form 1098.  Instead, if you itemized in the years for which you received Anchor refunds use Worksheet 2a in Publication 525 to figure the taxable amount, if any, of your state local refunds (if you itemized in those prior years).  You will notice how the SALT limit affects that calculation on lines 3, 4 and 5 on the worksheet. Depending on the refund amount as compared to the itemized deductions taken, some, all or none of the refunds may be taxable.  

 

Once you know the taxable amount, if any, for each year you received a state/local refund (including Anchor) you can make the entries in the "Other Common Income>form 1099G" topic.

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