KrisD15
Expert Alumni

Deductions & credits

If you did itemize, also be aware that if the state tax was limited because of the 10,000 SALT limit, you can factor that in as well. (The program cannot do this for you)

 

For example, if you had 12,000 in state and local taxes for 2023, but the amount you could claim on your 2023 Schedule A was limited to 10,000, any refund in the amount of 2,000 or less would not be claimed as income. A refund over 2,000 would be reduced. So a 3,000 refund would, in this example, result in 1,000 income. 

 

For the above situation, enter the 1099-G with the amount reduced for the state tax you were not allowed to claim on your 2023 Schedule A. 

 

 

 

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