Question on taxable refund. In the past year my entire state refund from the previous year was taxable on my current federal return (I itemize deductions). This year, only a fraction of my state refund is taxable and it is taxable on both federal and current state refunds. For example (numbers are not real), I got $500 NY state refund last year and I quoted this number in my current year federal return and TT is showing that only $55 dollars out of $500 will be taxable on my current federal return. It will also be taxable for $55 on my NY state return. Is this correct? I was under the impression that the entire state refund is taxable on federal return and none of it on state return.
