No, you do not want to enter the state tax refund you received, but rather any state tax payments you made, including:
- Amounts withheld on your W-2, W-2G, and 1099
- Estimated tax payments
- Add any paid this year for last year (it's common for the fourth quarterly payment to be made in January)
- Overpayment from prior year applied toward your current year return
- Payments made with an extension of time to file
- Payments made when you filed your return
- Refundable credits
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