Ephesians3-14
Level 8
03-21-2023
06:14 AM
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I have a client who received in 2022 a $50,000 state refund from an amended return that was prepared. The amended return was for the 2020 tax year.
In 2020, his state and local (and RE taxes) were $144,000 (capped at $10K of course).
I'm figuring that since he didn't get a tax benefit on the 2020 Sched A for the $50,000 deduction that the refund is not taxable in 2022. Am I thinking through this correctly?
Would he also need to file a CA tax return for 2022 and pay tax on that refund?
Any help would be appreciated.
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