Itemized Deductions are not taxable, but what you might be referring to is this-
If you Itemize Deductions, you most likely will claim State Taxes paid as part of your deductions (Schedule A line 5)
If you end up getting a state refund for part of the taxes you deducted on Schedule A, the following year you may need to report the state refund, or part of it, as income.
If the state tax deduction is limited because of the SALT limit (Schedule A line 6) make note of the amount of the limit.
If you do get a state refund, and the refund is as much or less that the amount that was disallowed, the refund needn't be reported.
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