I noted in the 2023 Turbo Tax that if you enter a State or Local Tax refund amount it is treated incorrectly for the year preceding the prior year. I received two refunds in 2023. One for 2022 and one for 2021. TT asks about whether a standard deduction was taken in the prior year (2022) - which would make the refund non-taxable. However, it does not ask if a standard deduction was taken in the year preceding the prior year (which would be 2021). The refund amount was subject to federal taxes - even though a standard deduction was taken in 2021. It appears that this is a programming issue. (Wonder about that guarantee that your taxes will be done correctly!!). If I did not notice the change in the refund/tax due amount I would have just assumed this was handled correctly). I figure the solution is to indicate that the refund pertaining to 2021 be marked as if it pertains to 2022. Anyone else see this differently?
