Page 50 - Virtual Currencies

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Fileid: … tions/p525/2022/a/xml/cycle08/source
The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.
Worksheet 2a. Computations for Worksheet 2, lines 1a and 1b 8:29 - 7-Feb-2023
Keep for Your Records
To determine amounts to enter on lines 1a and 1b of Worksheet 2, complete the following.

1. Enter the income tax refund from Form(s) 1099-G (or similar statement) . . . . . . . . . . . . . . . . . . . . . . 1.
2. Enter the refunds received for state and local real estate taxes and state and local personal
property taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.
3. Total state and local refunds. Add lines 1 and 2. But don’t enter more than the amount of your state
and local taxes shown on your 2021 Schedule A, line 5d . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.
4. Is the amount of state and local income taxes (or general sales taxes), real estate taxes, and
personal property taxes paid in 2021 (generally, this is the amount reported on your 2021
Schedule A, line 5d), more than the amount on your 2021 Schedule A, line 5e?

No. Enter the amount from line 3 on line 4 and go to line 5.

Yes. Subtract the amount on your 2021 Schedule A, line 5e, from the amount of state and local
income taxes (or general sales taxes), real estate taxes, and personal property taxes paid in 2021
(generally, this is the amount reported on your 2021 Schedule A, line 5d). Enter the result
here . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.
5. Is the amount on line 3 more than the amount on line 4?

No. [STOP] None of the refunds on line 1 or 2 are taxable.

Yes. Subtract line 4 from line 3 and enter the result here . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.
6. Add lines 1 and 2 and enter the result here . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.
7. Divide line 1 by line 6. Then multiply by the amount on line 5 and enter the result here and on
Worksheet 2, line 1a . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.
8. Divide line 2 by line 6. Then multiply by the amount on line 5 and enter the result here and on
Worksheet 2, line 1b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.

Publication 525 (2022) Page 27