That's where I get confused. When I answer all questions on TurboTax, the software ends up telling me it's non-taxable.
My understanding is that it should have been taxable since it is a direct change of my taxable income in 2023.
Since the software asked me questions related to last year's 1040, I answered based on my 1040-NR (non-resident status). My guess is that as a non-resident, I couldn't claim the standard deduction, which would have been higher than the itemized deduction (only my state tax). The software doesn't take into account this and concludes that the refund is non-taxable, by taking into account the standard deduction for a single person.
On the last page, before telling me that it is non-taxable, I have the option to "make my full refund taxable".
Should I go with TurboTax's conclusion? Or is it taxable, and the consideration about my status "single" shouldn't apply as I was not eligible for the standard deduction as a non-resident alien in 2023?
PS: along the way, I'm asked about schedule 2's AMT and excess advanced tax credit repayments, for which I gave an estimate since I had no schedule 2 applied as NR)
