Deductions & credits

Based on my review of your tax return and the state tax withholding for 2022 it should all be taxable. There is a worksheet in IRS Publication 525 (page 28), as indicated earlier.

When I use the worksheet and your 'Tax History' worksheet  (in Forms), based on your itemized deductions for 2022, the full amount should be taxable. To accomplish this in your entry, enter your state tax refund for prior to 2023 (2022) in the 'Taxable Amount' column. See the images below and the Worksheet 2 in the publication-Recoveries of Itemized Deductions. The calculation is based on the total itemized deductions vs the standard deduction and not just the limit on your allowed tax portion of your deductions.