It depends. If you are talking about state stimulus payments that came out in 2022, the IRS has said the payment is not taxable or included on your tax return if it is a general welfare and disaster relief.
People in the following states do not need to report these state payments on their 2022 tax return: California, Colorado, Connecticut, Delaware, Florida, Hawaii, Idaho, Illinois, Indiana, Maine, New Jersey, New Mexico, New York, Oregon, Pennsylvania, and Rhode Island.
There are special rules for people who live in Alaska, Illinois, and New York. Part of the Alaska Permanent Fund Dividend is not taxable. Illinois and New York issued multiple payments. Some may be taxable.
Residents of Georgia, Massachusetts, South Carolina, and Virginia received payments that are considered tax refunds. These may be taxable. Enter those like a regular tax refund and TurboTax will tell you whether it’s taxable or not.
Learn more at IRS issues guidance on state tax payments to help taxpayers. The article includes a list of the specific payments to which this applies.