Deductions & credits

Thank you so much for your detailed response to my questions on the vehicle registration fees and the 1099-G. It seems like I would have to include as income the $1,000 reported on the 1099-G.
 
While I have to comply based on what I reported on line 5a on Schedule A on tax year 2021 for $2,732 which comprised of state taxes withheld from a previous state I lived in and state taxes due 

 for 2020 tax return but paid in 2021, I found it so unfair that I have to include as income the $1,000 rebate which I received from the State of New Mexico, which I NEVER asked for and thought of it like a stimulus. Had I known its tax implication, I would have returned it.