Get your taxes done using TurboTax
A state tax refund from filing the prior year's taxes would only be taxable to the extent there was a tax benefit - i.e., you took an itemized deduction for taxes paid.
If you were going to report a state tax refund received in 2024 as income and reported on Form 1099-G, TurboTax would ask how much you deducted for state and local taxes in 2023 (line 5 from Schedule A).
To find the state tax refund section, go to Wages and Income, select Other Income, and then Refunds Received for State/Local Tax Returns.
When you see the question (see screenshot below) "Did you receive any of these payments reported on Form 1099-G", answer No if you received a state tax refund only. There are other types of government payments reported on that form, such as farm subsidies. Answering Yes could result in TurboTax asking if the payment is related to a Schedule C or a Schedule F.
See this help article for more information on entering the form.
See this article for more information about Form 1099-G.
