IF you had (say) $15,000 of property taxes for 2023....then you could only use $10,000 due to SALT.
Two examples:
1) Then if you had a $6000 refund from the state for 2023 taxes, then the $5000 you couldn't use for Feds for 2023, wipes $5000 out of the state refund as being Federally taxable for 2024, with the remaining $1000 State refund being Fed taxable for 2024
2) OR...If you got a $3000 refund from the state for 2023, then the $5000 you couldn't use for Feds for 2023, wipes out any of the state refund as being taxable for 2024.
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The TTX software has handled this properly for me in the past couple years...when I was over the SALT limit for the prior year (and was using itemized deductions the prior year)
____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
