Thank you for asking MayaD. The Iowa state return was amended in 2022 for 2020 taxes to claim only additional Earned Income Credit, no refund of withholding. The additional funds were received in 2022. The standard deduction was taken in both 2020 and 2021 on federal and state taxes as itemized deductions were much less than the standard deduction. For that reason, I am under the impression that the tax benefit rule applies but TT is including it as 2022 income. Does the 2 year gap make a difference?
