I received a M1PR in 2023 (based on 2022 income). Does this get reported? Does it on "wages & income" under refunds received or reduce property tax paid on Sch A Line 5B?

[jonwall300]

New homeowner, just was wondering how this works or how to report refund. Should it be entered as part of refunds received for state/local tax returns (which looks like it would be non-taxable this year since I didn't itemize last year) or would it reduce the amount you enter on schedule A Line 5B for property taxes paid?

Thanks!

[ThomasM125]

If you didn't itemize your deductions in 2022, you wouldn't have deducted your property tax, so the refund of a portion of it would require no entry on your 2023 tax return. It would not reduce your 2023 property tax since it applies to the previous year.