There was an issue with the state refund amount doubling for some tax returns this year.
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.
If you took the standard deduction, then the state income tax refund had no effect on your return and you will not need to amend.
If you itemized and your state refund amount doubled, then you can amend, when Amend is available later this month.
For more information, follow this link: Are State Tax Refunds Taxable?
