Why is the taxable state/local income tax refund not calculating on converted returns?
The information required to calculate the taxability of state and local income tax refunds is not transferred into the returns during the conversion process. You must input this information in the Organizer under Income | Miscellaneous Income | Sch. A Info. State/Local Tax Refund. We will calculate the taxability of the refund based on this input. However, in an AMT situation, you must manually calculate the State/Local tax refund that had no tax benefit in the prior year and enter the result in this field.
