@jelo56 wrote:
Thank you for your response. Does TT produce a sheet that demonstrates that the prior year's refund is non-taxable?
I'm sorry but I am little confused by your wording, "If your tax without the refund would still have been high enough....." My total state and local taxes together were over $37K ~ $19K state income taxes and $17K+ in real estate taxes. I understand that this was capped at $10K. In effect, I lost the deductibility of $27K+
Thank you.
If the state taxes you paid in 2019 (income plus property taxes), after subtracting the refund you received in 2020, were still more than the cap, then you received no tax benefit from the refunded taxes.
If Turbotax is not calculating this correctly in your case, there may be a bug or oversight in the program. If you go to the Help or Tools menu and select "Send file to agent" it will give you a token number and upload an anonymous version of your file to tech support. Post the token number here and I can ask for an investigation.
