I am stuck. TurboTax is requesting I enter state tax refund as income. However, my total state income tax + property taxes were well over the 10K SALT limit for deductions. It would be a wash. Do I simply not report the state tax refund (implied by IRS see link, With new SALT limit, IRS explains tax treatment of state and local tax refunds | Internal Revenue Se... ). Or, do I enter it and TurboTax will calculate the overage above the SALT limit and remove/deduct it as income?|
Please advise
