State Income Tax Refund

Forum|Forum|2 years ago
March 8, 2024
3 replies
16 views

Hello,

The state income tax refund always confuses me.

In 2022, I had $10,453 in state income taxes that was limited to $10,000 due to the SALT cap.

I had $7,476 in interest expense and $600 in charitable contributions.

Therefore, all in all, I had $18,076 in charitable deductions.

This year, I received a 1099-G for $691. Is that $691 refund taxable?

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sjrcpa

Level 15

Any real estate tax deducted?

The more I know the more I don’t know.

K

kwthetaxguyAuthor

Level 4

Last year? Yes, 2022 info below:

Real Estate Taxes: $1,917

State income taxes: $8,536

Total State Taxes = $10,453

Refund listed on 2022 1099-G: $691

Accountant-Man

Level 13

This line is wrong:

<<Therefore, all in all, I had $18,076 in charitable deductions.>>

(Maybe 18076 in itemized?)

The refund worksheet will calculate that only X% of the income taxes paid were really deducted (10000 / 10453 = 95.6%) and since 8536 /10453 was the income tax piece of the total, x 95.6% was deducted, depending on the Std Deduction for your TP, only 81.67% X 95.6% of the $691 refund is taxable income.

I think?

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