Recovery and Deduction Allocation State and Local Income Taxes
1
TaxAct does not calculate this allocation for state taxes. If the amounts for Prior Year State Income Tax Refund (to be included in taxable income on the current year's return) and the deduction for Prior Year State and Local Estimates Paid After 12/31/20YY need to be adjusted, the taxpayer would need to manually perform this allocation. See IRS Publication 525 for details.