Do I have to enter my STATE previous year refund as income in my federal return now? TT contradicts itself by saying "Only if you itemized" vs "it is taxable income"

It depends.  When you itemize deductions, you have to report reimbursements to any deductions you took as income.  If you took your state taxes paid as a deduction on your Federal Return, some or all of your refund may be taxable now.  The real question is whether or not you itemized.  The following FAQ will help you figure that out:  https://ttlc.intuit.com/replies/4767958

If you did not itemize, you will not need to claim any of your state income tax refund as income.  You also will not claim it as income if you took the sales tax deduction instead of the state and local income tax deduction.