The IRS has determined it will not challenge the taxability of payments related to general welfare and disaster relief. This means that people in the following states do not need to report these state payments on their 2022 Federal tax return: California, Colorado, Connecticut, Delaware, Florida, Hawaii, Idaho, Illinois, Indiana, Maine, New Jersey, New Mexico, New York, Oregon, Pennsylvania, and Rhode Island.
Please see this IRS webpage for more information.
A state tax refund from filing the prior year's taxes would only be taxable to the extent there was a tax benefit - i.e., you took an itemized deduction for taxes paid.
To find the state tax refund section, go to Wages and Income, select Other Income, and then Refunds Received for State/Local Tax Returns. Enter the Form 1099-G amount that represents your tax refund from your 2021 tax return. TurboTax will ask how much you deducted for state and local taxes in 2021 (line 5 from Schedule A).
Please see this Indiana DOR webpage for more information regarding the Automatic Tax Refund payments, and the related credit on the Indiana return, including how to contact them if you didn't receive the payment.
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