As xmasbaby mentioned, if you itemized your deductions in 2023, your state refunds from a previous year may be taxable. State refunds are generally reported on a Form 1099-G. When you enter them, TurboTax will figure out if they are taxable or not. Even when your refund is taxable, it may not be the entire amount. It depends on how much the deduction affected your refund or tax bill in 2023.
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