State and Local Tax Refund Summary - why is a refund from 2022 being reported on my 2023 taxes?

[SharonD007]

When you deduct your state and local taxes as an Itemized Deduction on your Schedule A in the prior year and you get a state refund that year, then your state refund that you received from the prior year may be taxable. TurboTax will do the calculations.

For more information, refer to the TurboTax Help article Do I need to report the state or local refund I got last year? Is it taxable?

[VolvoGirl]

Did you get a 1099G for it?  Is it showing up as taxable on Schedule 1 line 1 which goes to 1040 line 8? 

A State Tax Refund is taxable if you itemized deductions on that prior year's federal return and took a deduction for state income taxes instead of the sale tax.  You got a deduction benefit for it so now you have to include it as income. If you took the standard deduction it is not taxable and you don't need to report it.

[DawnC]

The summary shows all your entries, but not everything on the summary is taxable.   Check your Form 1040 to verify whether it was included in your taxable income or not.   If that income was taxable, you will see it on Line 8.  If it is not on Line 8, it is not taxable.   Example:  I entered a state tax refund, so it is on my summary, but I did not itemize, so it is not taxable and not on my Form 1040.