If you didn't itemize in 2021, your State Refund would not have been taxable in 2022, as you mentioned.
Only the instance where you deduct state and local taxes, and then receive that portion as a refund becomes taxable when received.
Yes, you could delete this income from your 2023 return and just save the documentation in case it's needed later.
Here's more info on Are State Refunds Taxable?
@Rick9464
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