Is my state refund taxable if I ended up paying another state?

[riehlemt]

In 2017, my employer withheld my state taxes for the wrong state. I ended up paying my current state that I live and work in and requested a full refund from the state that was incorrectly withheld. I ended up paying more for the state I live and work in then was withheld in the incorrect state. I also itemized my deductions. Do I need to report this as a refund (which is then taxable) or is there something else I need to do? I feel like because of this situation, I've lost out on the benefits of itemizing last year, because this year I'm taking the standard deduction. 

Thanks!

[ee-ea]

In 2017 you deducted the tax paid to the wrong state and when it returned to you in 20188 it is income

The payment to the right state in 2018 is a deduction

All has to be shown on the return

[riehlemt]

Ok, thanks. I appreciate it!