Arizona income

[PhilG3]

I received federal refund in 2018. Does this federal refund need to be counted as income when filing my Arizona tax return for 2019?

[Irene2805]

No -- You do not need to include your 2018 federal refund in your AZ tax return.

However, you do have to include your state refund in your federal return, but ONLY if you itemized deductions on your federal return in 2018.  If you did not itemize, don't include any AZ refund in your 1040.