tccpg289
Level 4
04-11-2022
07:39 PM
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I understand that if you itemize deductions and then receive a state tax refund as a result, the refund is potentially taxable in the subsequent year.
However, there are considerations of the limitations on the itemized deductions (i.e. you are capped at $10k property taxes, and the difference of the itemized vs. the standard).
Can someone confirm the basic calculation? i.e. if the standard deduction is $24k, the taxpayer itemized and took $30k, resulting in a refund of $1k with their respective state, how much of the $1k is taxable?
Let's say this is a new client and I have their prior year return, and I am entering everything new in ProSeries. What is the best worksheet to calculate?
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