 State and local income taxes paid in 2023 for a prior year, such as taxes paid with your 2022 state or local income tax return don't include penalties or interest. Now, this is where it gets a little bit messy because we're basically on a cash-based system with regards to when we can deduct things. However, when we pay the taxes, we're gonna apply them to a particular year. So for example, if you pay estimated tax payments, you have to pay quarterly estimated tax payments. The last quarterly payment for, let's say 2023 isn't due until 2024. So when do you get the deduction? You paid the money for tax year 2023. So if it was a state tax, do you get the deduction in 2023 or 2024? Well, typically you get the deduction in general on a cash basis when you paid the tax, not when you applied not dependent upon what year you applied the tax to. That's kind of like the general rule. State and local estimated tax payments made during 2023 included any part of a prior year refund that you chose to have credited to your 2023 state or local income taxes. So in other words, let's say you had a refund of state taxes, not federal, but state taxes in 2022 instead of them giving you the money, you said, I just want you to keep the money IRS and count it as an estimated payment for tax year 2023. Well, that would be like you getting the money in a check and then paying it back to the government as an estimated payment in 2023. Therefore, it should be a cash payment in essence that was made in 2023 and therefore possibly deductible tax year 2023. Now also note that penalties are not normally deductible. So don't include it says penalties and interest here. So meaning like you owed your tax and then they charged you penalties and interest on top of that, the penalties and interest are typically not going to be deductible as a state tax, right? So they don't want to incentivize people for the penalties. That seems straightforward, but again, can be confusing because then you have to determine how much of the payments for penalties and interest, which the IRS tells you in the forums, but typically if you just look at the payments that you made to them, you might not see the breakout between penalties and interest, but in any case. So mandatory contributions you made to the California, New Jersey, or New York non-occupational disability benefit fund, Rhode Island temporary disability benefit fund or Washington state supplemental workman's compensation fund. So those are kind of specialty areas that they apply to you there. Mandatory contributions to the Alaska, California, New Jersey or Pennsylvania state unemployment fund, mandatory contributions to state family leave programs such as the New Jersey family leave insurance, the FLI program and the California paid family leave program. Don't reduce your deduction by any state or local income tax refund or credit you expect to receive in 2023. In other words, you would think that if whatever I paid in 2023, then I shouldn't deduct all of it, right? Because I'm gonna get a refund, right? If I paid 10,000 in 2023 and, or if I paid like 3,000 in 2023 and I'm gonna get 1,000 back as a refund, wouldn't I only deduct 2,000 because I overpaid and they're gonna give me the money back. But the idea is, well, no, we're gonna be in a cash-based system. You overpaid this year. When you get the refund next year, that's when we determine if you got a benefit in the current year, then you would have to include it in income next year. That's how the general system is going to work. So if you paid 3,000 taxes this year to the state and you're gonna get a 1,000 refund, if you didn't get any deduction for it this year because you didn't itemize because your standard deduction was greater than the itemized deduction, then you're gonna get the 1,000 back in 2024 and they'll tell you about it, but you don't have to include it in income because you didn't deduct it in 2023. But if you got a deduction in 2023, you benefit of the deduction for $3,000 in 2023, then they give you a 1,000 refund back in 2024 because you got a deduction for that 1,000 benefit in 2023, you have to then pay or include it in income in 2024. So that's the general idea that we saw on the income side of things. So refund of or credit for prior year state and local income taxes you actually received in 2023, instead see instructions for schedule one form 1040 line one. So you might say, okay, well, what if I got a refund of state taxes in 2023 for the overpayment of taxes that I paid in 2022? If I paid 3,000 of taxes this year, shouldn't I reduce that amount by the refund that I got from 2022? No, that's not generally how it works because you're gonna put the amount that you paid and if you have to include the refund in income, then the question you have to include it in income, you're not gonna make the adjustment on the deduction side on the schedule A, you're gonna make the determination to fix the prior year because you would have over deducted possibly in the prior year, you're gonna fix that not by amending last year, you're gonna fix that not by reducing the amount of the schedule A deduction this year, but rather by determining if you have to include it in income on schedule one, which we talked about in the income section.