I have $16,000 + in SALT deductions, but my state taxes of $9000+ include a refund of $4000+. When I do turbo tax for 2025, it will ask if I got a state tax refund and when I answer yes , $4000+, will it tax the refund as normal income since I itemized for 2024, but will most likely use the standard deduction for 2025. Or will it look at the actual Salt deductions for $16,000+ and give me credit for the 6000+ that I did not use, therefore hopefully canceling out the tax due in 2025 for the state refund of $4000+? If I override the line for state taxes pd in 2024 in schedule A and use the actual tax amount then I think that might solve the issue. But then I read one cannot efile a return that has an item overridden.
