OP MODIFIED THE QUESTION AFTER REPLIES WERE POSTED.
What state?
If it says "for tax years from 2021 or prior years" it seems clear that it is telling you that you should add the 2020 refund. But every state has different forms and rules, and only a few states consider federal income tax on the state return. If you tell us what state it is, maybe someone who is familiar with that state's taxes can provide more information.
