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Thanks Fuskie...

..but just for clarification I'm still in the process of finishing our tax work - last night I added the information on the 1099-G form on my federal worksheet (I'm using TaxCut) where indicated and got the message about referring to publication 525, thence the question about it being taxable. Since I included it on the federal form, does that mean that I am deducting it?

What would happen if I didn't include it?
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