On your 2021 federal return did you itemize deductions or take the Standard Deduction? Just enter the full state refund and Turbo Tax will calculate how much is taxable if any.
A State Tax Refund is taxable if you itemized deductions on that prior year's federal return and took a deduction for state income taxes instead of the sale tax. You got a deduction benefit for it so now you have to include it as income. If you took the standard deduction it is not taxable and you don't need to report it.
