Running Smart Check on TurboTax Deluxe 2024, desktop version, and got this message:
Check This Entry
State Tax Refund Worksheet: Item B must be entered.
And then there is one empty field marked "Item B" but no link to click through to the worksheet or any other page within TurboTax (screenshot below). So what on earth does that mean? Am I supposed to know what Item B is???
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Item "B" on the State and Local Income Tax refund Worksheet is the "Refund Amount"
If you took the Standard Deduction on your 2023 Tax Year Federal return, you can disregard the state refund. It is not reported, it is not taxable.
The reason is that if you Itemized Deductions, you claim state taxes paid. If later you get some of that state tax refunded, you may need to claim some or all of that refund as income.
When you take the Standard Deduction, you are not claiming State Tax paid as a deduction, so state refunds are not taxable.
Thank you, I appreciate your answer. I am still quite frustrated that TurboTax would provide this prompt in the "Smart Check" without any explanation or guidance, or even any links so I can try to figure it out myself. Why did I pay for Deluxe software??
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