Q. My actual state tax is way beyond the deduction I am allowed on the federal return. Thus, the $4,800 state refund I will receive seems to be non-taxable. Just wondered whether anyone can confirm it?
A. Yes. The SALT (state and local tax) deduction limit is $10,000. So, if your total SALT was more than $14,800, your state tax refund would not be taxable because you got no tax deduction for that $4800. The TT worksheet should confirm that.
