Is the amount in Box 2? @Grace55 What year is in Box 3?
From Publication 525 - If you received a state or local income tax refund (or credit or offset) in 2024, you must generally include it in income if you deducted the tax in an earlier year. The payer should send Form 1099-G to you by January 31, 2025. The IRS will also receive a copy of the Form 1099-G. If you file Form 1040 or 1040-SR, use the worksheet in the 2024 Instructions for Schedule 1 (Form 1040) to figure the amount (if any) to include in your income. See Itemized Deduction Recoveries, later, for when you must use Worksheet 2, later in this publication. If you could choose to deduct for a tax year either:
• State and local income taxes, or
• State and local general sales taxes,
then the maximum refund that you may have to include in income is limited to the excess of the tax you chose to deduct for that year over the tax you didn't choose to deduct for that year.
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