Hanover02339
Hanover02339 t1_j7sreo0 wrote
Reply to comment by wkomorow in IRS May Tax Massachusetts Refunds Sent In 2022 Under 62F Law by Lilslugga2002
Thank you for sharing this - it addresses exactly the scenario I was raising, and also confirms that it wouldn’t make sense to tax this refund under the circumstances described.
Reddit!!
Those folks who’s refund would bring them under the SALT limit, would be the ones who could be affected by this potential ruling.
Hanover02339 t1_j7snzyv wrote
Reply to comment by wkomorow in IRS May Tax Massachusetts Refunds Sent In 2022 Under 62F Law by Lilslugga2002
What about the 10k deduction cap on state and local taxes though? If you were only able to deduct 10k out of say, 20k of MA taxes, and this refund returned to you 3k of the 20k of MA taxes, how would it make sense to pay taxes on the refund of a deduction that you didn’t take?
Hanover02339 t1_j7sroxh wrote
Reply to comment by wallet535 in IRS May Tax Massachusetts Refunds Sent In 2022 Under 62F Law by Lilslugga2002
U/wkomorow provided a link that addresses the situation precisely. That’s good Reddit.