Item "B" on the State and Local Income Tax refund Worksheet is the "Refund Amount"
If you took the Standard Deduction on your 2023 Tax Year Federal return, you can disregard the state refund. It is not reported, it is not taxable.
The reason is that if you Itemized Deductions, you claim state taxes paid. If later you get some of that state tax refunded, you may need to claim some or all of that refund as income.
When you take the Standard Deduction, you are not claiming State Tax paid as a deduction, so state refunds are not taxable.
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