It isn't new.
If you receive a state refund in 2020 for tax year 2019, the refund may, or may not be taxable income on your 2020 federal return.
It depends on whether for your 2019 Federal return-
If you took the Standard Deduction (NOT TAXABLE)
If you Itemized and claimed State SALES tax rather that State INCOME tax (NOT TAXABLE)
If you itemized and claimed State INCOME TAX, the refund COULD be taxable or partially taxable. THAT depends on how much state income tax you claimed on the 2019 federal return. The TurboTax program is asking for that number. you can add up the state income tax withheld from your 2019 tax documents or look on your 2019 Schedule A.
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