This year, instead of filling out the State and Local Income Tax Refund Worksheet, TurboTax instead used Schedule 1-Additional Income and Adjustments to Income. This means that my prior year State Tax refund was counted as income this year, when in the past, I qualified for a recovery exclusion. Has something changed with the tax law to eliminate the recovery exclusion on state tax refunds?
posted
last updated
April 15, 2022
2:38 PM