The first page is asking about any state/local tax refund you received in 2023. After you enter the amount of the state/local tax refund you received, you are asked the question did you itemize your federal return in the year your are getting the refund for (typically 2022). If you answer that you took the standard deduction on your federal return in 2022 then none of that refund amount will be taxable on your 2023 return.
However, if you answer that you itemized in 2022, then you will be asked about that prior return to find out if the amount of your refund affected your 2022 federal tax liability. If it did some or all may be taxable income on your 2023 return.
Next, you are able to take the standard deduction on your federal return and still take itemized deductions on your NY return. In the NY state interview in the "Income" section there are some deductions that are available in NY but not on your federal return that may make your NY itemized deductions higher than the NY standard deduction. TurboTax will automatically calculate that for you and select the higher deduction choice.
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