You pay federal tax on your prior state refund only if you itemized your deductions.

If you itemized, you have already claimed the deduction for state/local tax paid, so this prevents you from receiving double credit.

For more information, follow this link: https://blog.turbotax.intuit.com/tax-tips/is-my-state-tax-refund-taxable-and-why-90/

Thanks Carolyn - I am actually talking about the NY State Return and not Federal. On the page "New York Income Allocation" in Turbo - do I need to enter my 2017 NY State Refund amount in the NY Source Portion in the row Taxable Refunds of State Income Tax??

No