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Yes.
Even though a state or local tax refund(s) is related to a prior tax year, it may be relevant to the current tax year because that is when it was received. You should answer the questions and continue through the section because the IRS may access the information via the state/locality and they may contact you for more information if the amount(s) should have been reported on your federal tax return but they have not been reported. TurboTax will help determine if the amount(s) are taxable or not. Please review the following link(s) and the link(s) embedded on the webpage(s) for more information:
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