Thank you！ I am also confused why choosing itemized deduction will increase my federal tax but decrease my state tax.
My itemized deduction is very close to the standard deduction, $24,320 v. $25,600. However, for VA, its standard deduction is only $18,000. If I choose itemized deduction, the deduction for VA is about $29,800. That's why I can pay less tax on VA.
My actual state tax is way beyond the deduction I am allowed in VA. Thus, the $4,800 state refund I will receive seems is non-taxable.
Just wondered whether anyone can confirm it? Thanks
