This issue isn’t related to state taxes. The issue is whether the previous years state refund is taxable in this years federal return.Spoiler (Highlight to read...
This is the second part of the example (pasted the first part twice)Situation 2: State income tax refund not includable. In 2019, B received a $750 refund of st...
Based on this document from the IRS, Turbo Tax is not handling State Refunds correctly.https://www.irs.gov/newsroom/with-new-salt-limit-irs-explains-tax-treatme...
“If your income or property value is so high that you paid $132,000 of state tax, you should be having your tax return prepared by a professional, not doing it ...