Are you able to enter each state refund individually? Then you can report one refund that used the standard deduction and a second refund that used itemized deductions.
The general rule of thumb is that if you did not deduct state and local income taxes because you used the standard deduction, the state refund will not be taxable income.
If you itemized deductions on your Federal tax return, a state refund may or may not be taxable income based upon the numbers from your previous year's tax return.
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