As a general rule, taxpayers who choose the standard deduction on their federal income tax returns do not owe federal income tax on state tax refunds.
The vast majority of taxpayers claim the standard deduction. Your state tax refund was received because you had more withholding than your tax due, when you filed last year's return. Your tax form that reports your state refund (1099-G) would not have withholding on it. However, if you received Form 1099-G for unemployment, you would enter that amount from Box 4 when you enter the tax form.
If you have an amount in Box 2 of 1099-G for a state or local refund, click on that link for instructions. If you are asking about another form, please reply with a comment. @Satishn11
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