State tax filing

It may or may not be taxable.  It is taxable if you itemized deductions last year.  If you took the standard deduction it is not taxable.  If you Itemized and took the state income tax deduction instead of the sales tax deduction on sch A line 5 you got a deduction for it.  So now the refund can be taxable.

FAQ https://ttlc.intuit.com/replies/3300438

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