You do not have to report the refund as it is not income, however, the interest is.
You'll enter interest paid from your bank by clicking on Federal Taxes, then Wages & Income, then scroll down to Interest & Dividends and click on Interest on 1099-INT. Click start and follow the prompts.
TurboTax will ask if you received interest and you'll say "yes." Then click "I'll type it in myself" and you'll be shown a screen to enter your amount(s). TurboTax will address you as if you received a 1099-INT, but you may not have received the form, which is okay. You'll simply type the amount of interest into box 1 on the screen.
