Sold house 2017
We are newlyweds, spouse sold her primary residence in 2017. Sale of the home fell under tax exemptions (i.e. primary, 2 of 5 blah blah), however, title company paid the state a 2% sales tax. The 2% sales tax was returned in a state refund in 2018 due to the sale of the house falling under the said exemptions. Should we omit the 1099-G provided by the state as income during 2018 as that money was tax exempt in 2017, and spouse did not itemize 2017 taxes?