Are we going to be taxed on our state tax next year if we file itemized rather than standard. it's telling us itemized is what we should do

[HelenaC · Accepted solution]

If you itemize deductions on your return, you can take a deduction for state income tax paid or state sales tax paid. 

If your itemized deduction had state income taxes deducted instead of sales tax, yes, you will have to claim your 2016 state refund in you 2017 income tax return.

TurboTax will automatically carry over any state income tax refund that has to be included in income.

For additional information, click on Do I need to report the state or local refund I got - TurboTax Support

Related information:

Where do I enter a 1099-G for a state or local tax refund?