You still report the state refund on the income page. Whether it gets taxable or not depends on whether you itemized deductions last year, and if you did itemize, if the $10,000 SALT was exceeded as part of those deductions, then part or all of the state refund will not be included in Federal income. If you used the Std Deduction last year, then the state refund you enter is not added to Federal income.
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In the end, IF it is included in Federal income for 2022 Federal taxes, then that refund may be offset by Balance Due you had to pay to the proper state. The Balance Due you paid for 2021 state taxes, is then entered in the Deductions&Credits page. Down in the Estimates and Other taxes paid section, in that section, there is a menu selection for Other Taxes Paid.....you go in there and find a menu line for Balance due on your 2021 taxes paid in 2022.
____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
