If you itemized on your 2023 tax return, you may have to report the New York state tax refund as income. The New York Department of Finance provides information for your New York state return- New York subtracts income for the state refund if it is included on the federal return. This does not necessarily mean it will not be taxable on the federal return. TurboTax will ask you questions in the interview to determine if you have to report it on your federal return.
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