Yes, state AND local HOWEVER
You can use the amounts from your income producing tax documents, but there is an easier (and better) way.
Look at your 2019 1040 line 9. Did you Take the Standard Deduction or Itemize?
If you took the Standard Deduction, the 1099-G is NOT taxable, it is NOT reported.
If you Itemized, look at your 2019 Schedule A. Did you claim State Income Tax or State Sales Tax? Is Box 5a checked on the 2019 Schedule A?
If Box 5a on the Schedule A IS checked, you claimed State Sales tax (not State Income Tax) and the state refund is NOT taxable, it is NOT reported.
If Box 5a on the Schedule A IS NOT checked, you claimed State Income Tax and the state refund MAY BE taxable.
Use the amount listed on line schedule A line 5d as total taxes paid.
If TurboTax is asking about entries for the Refund Worksheet:
Item Q line 1 is found on the previous year’s Schedule A line 5b
Item Q line 2 is found on the previous year’s Schedule A line 5c
[Edited 02/16/2021 | 5:38PM PST]
@bobi456
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