Issue with State and Local Income tax refund Worksheet

[Luke58]

I noted in the 2023 Turbo Tax that if you enter a State or Local Tax refund amount it is treated incorrectly for the year preceding the prior year.  I received two refunds in 2023. One for 2022 and one for 2021. TT asks about whether a standard deduction was taken in the prior year (2022) - which would make the refund non-taxable. However, it does not ask if a standard deduction was taken in the year preceding the prior year (which would be 2021). The refund amount was subject to federal taxes - even though a standard deduction was taken in 2021. It appears that this is a programming issue. (Wonder about that guarantee that your taxes will be done correctly!!).  If I did not notice the change in the refund/tax due amount I would have just assumed this was handled correctly).  I figure the solution is to indicate that the refund pertaining to 2021 be marked as if it pertains to 2022.  Anyone else see this differently?

[rjs]

This is a known bug that TurboTax is working on. But if you took the standard deduction for 2021, the best solution is to not enter the 2021 refund at all. There is no need to enter it. It does not get reported anywhere on your tax return if it's not taxable.

[Luke58]

Thanks.  Will Do.

Seems odd that this is still a bug from 2018 - I think that was when first question was posted.