This is not true for money refunded by the Feds ... But if you deducted the full amount of state or local taxes previously, then you didn't pay taxes on those a

This is not true for money refunded by the Feds ... But if you deducted the full amount of state or local taxes previously, then you didn't pay taxes on those and a refund is indeed income. It's as easy easy as (not pie) flying with wax and feather wings.