No, it does not apply here because it's not a refund or your state tax from your 2024 tax return. It is a special inflation adjustment that was paid to some New York State (NYS) residents for a 2023 tax year.
The full amount should be taxable on your federal return following the steps outlined. Be sure to select 'No' when asked to see if it's taxable.
@sprice37
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
