The federal refund would not be taxable in 2024. Since you probably deducted state income taxes paid in 2023 as part of the federal itemized deductions in that year, if you have a refund of state taxes, it will be taxable in 2024 to the extent it reduced your federal tax in 2023. It will be taxable to the estate of the deceased assuming an estate tax return is filed. It would be necessary if the income of the estate was more than $600 in 2024. The $600 of estate income refers to the gross income without factoring in estate expenses, so you would need to file an estate tax return if the state refund income plus any other estate income was over $600. If an estate tax return is not required, there would be no tax on the state tax refund.
I am sorry for your loss.
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