I finally got the time this weekend to sit down and analyze this and I have to admit I am very impressed with your knowledge of the tax calculations.
I applied your hypothetical scenario to my 2017 tax return and refund and guess what - it worked!
Using your step by step approach I was able to come up with exactly the same amount for the taxable part of the refund as turbo tax is quoting!
Thank you so much for taking the time to explain it so clearly and thoroughly - I feel much more confident knowing where the numbers are coming from. I have moved to the US in 2015 and have been doing taxes myself so I always try to understand where the numbers are coming from, in case someone asks. Thanks again! Cheers, Magdalena
