Why are Estimated Tax Payments to the state showing up under Income?

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Hard to tell what you're talking about-estimated payments you made last year, est. payments for next year, where are they showing under income?

If you deducted state and local income tax as part of your itemized deductions last year, that total included estimated payments you made. The refund from your state for last year then becomes taxable income this year. Without more information, this is the only guess I can make.