The only way the state tax refund is counted as income is if you itemized deductions in the prior year and took a deduction for the state taxes that you paid. You should check your 2023 return and see if you took the standard deduction or not. If you did then you can ignore the tax refund 1099. If you itemized deductions then go ahead and enter it into TurboTax and the system will add it to income.
@purplestar777
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