 and go to my 1099G and say this was a state refund, state refund. And I say that this is gonna be state and local tax refund. And let's say I got whatever $1,000 refunded and I just plug that in. If I jump back on over, that might not populate here. It's not populating, why? Because the software doesn't know if I got a benefit from it last year. It doesn't know if I got a benefit. This often confuses people because they say, well, if I got a 1099G and I entered it in the proper area on the tax return, it should pull over. Well, the software saying, well, I don't know if it should pull over because I can't tell if you got a benefit from it in the prior year. Now, if you're using the same software from last year to the current year, then hopefully the software will be able to know whether or not you got a benefit and it'll help you out with that calculation. If you have a new client, then you can basically say, well, if it's an easy tax return, I can see that they didn't itemize last year. So I'm not gonna go through the problem of entering the data into the 2021 tax return and rolling over. I'm just gonna say, yeah, I entered that in and it didn't pull over. That makes sense because they didn't have a benefit last year anyways. So no problem. No problem. However, if I look at the last year tax return and they did itemize, they have these itemized deductions that are greater than the standard deduction. I would suggest that instead of just starting that new client entering it into 2022 tax software, you might think about entering it into 2021, which is more costly maybe because maybe you have to pay for a 2021 return in order to populate it, but it might be worthwhile to do and then rolling it over to 2022. So the software can then do some of these calculations automatically as you roll the information forward. So I'm gonna imagine, let's imagine last year that they did itemize. Let's imagine, for example, let's mirror it this time. What are the things that usually pull people over to itemizing? We'll talk about this more later, but they're gonna be, if I go to the itemized deduction, if they own a home, if they own a home, then they might have interest on the home, home mortgage interest. So let's add the home mortgage interest and we'll talk more about these later, but let's just say it was significant, like 20,000 in the home mortgage interest. And let's say their taxes were, let's say the real estate taxes were, let's say, let's say 6,000. Now then they would also have state taxes, which if you were populating, if I was doing like a California return, I would also be calculating the state tax at the same time, and it would help me to pull out and determine that or it'll give me the taxes that are being calculated for the sales tax using a table or I can populate the sales tax. So now I'm gonna say, okay, well, they're itemizing possibly, if I pull this on over to page one, they're over the standard deduction. So okay, oh, they're itemizing. So that would be, I would think then it's much more likely that that state refund would have to be included in income, which would look something like this. So now I've got the state tax refund included here and on schedule one. And if I pull that back on over to the 1040, now I've got the 100,000 here and then I've got the 1000 pulling in from the taxable income. And then we've got our itemized deductions. Now we're at the 73, 983 and so on. So the general, and so notice I basically made an override forcing the 1000 to pull in on the software here. Again, in practice, I would think the best theory, the best practice to do is if you have an easy tax return, one in which they didn't have a schedule A last year, then you could maybe just start your tax return in 2022 and just go forward. If you have a more complex tax return and so for example, if someone had a schedule A, I would typically do the practice of putting that in mirroring the same data input for that new client in 2021 tax year to match what the data input was so I can then roll it over to 2022, allowing the software to help me with some of those worksheets to determine if they got a benefit from things like the state taxes and other kind of a rollover kind of components. That might cost more to do that, but that gets you off on the right foot, I think from the first year going forward. I think that's worthwhile to do oftentimes for more complex tax returns because again, you could imagine, like if they itemized last year, you might say, well, yeah, they got a benefit from it because they've got these taxes that they deducted here on the schedule A, but remember if the taxes are high enough, let's imagine the state taxes are like 12,000, let's say, and then I pull this over, now there's gonna be a cap of 10,000, so now there's a cap, so now there's a question of, well, yeah, well, now I got the amount that refunded may not have impacted the amount I got a benefit from because there's a cap of 10,000 on it, or you can imagine a situation where I'm just barely getting over the itemized threshold. So if I could have gotten a standard deduction of in this case, 12,950, and then I just barely got over to itemizing because my itemized deductions, including the state taxes, happened to be $13,000, well, then I didn't really get a benefit, I only got a benefit of like $50 added. So if my state tax refund or the state tax deduction was like $2,000 or whatever, I really only got a benefit of it of like $50, right? You could see where these problems come into play and how it can be a complicated worksheet to actually drill down on how much benefit you got. So what you wanna have an idea is the general theory and then use the software and see that the software and double check deconstruct what the software is doing. If the software then calculates and says, well, only half of the tax is being included in schedule one. As long as you didn't override it, then you can say, okay, does that make sense and deconstruct it? Why does that make sense? Well, yeah, because they hit the cap on the schedule A last year. So that means that some of the state taxes, they didn't get a benefit from the deduction and whatnot. That's the general idea of thought process that you might think through when you get that form 1099G, the basic thing that you would tell the client would be, I got a 1099G, do I have to include it in income? Or they might ask, you might do the tax return and they say, hey, look, I got a 1099G and you didn't include it in income. You should have, cause I got a 1099G and your response is, well, no, you're only gonna include it there if you got a benefit from it last year. And if you didn't itemize, you didn't get a benefit. The only reason they gave you a 1099G is cause they don't know if you got a benefit from it or not. And that's the reason it wouldn't be there if it wasn't there or something like that, right?