What did you do last year? Did you report your state tax payments and deduct it from your AGI? If so, then you need to declare the refund this year. If you did not report the state tax payments last year, you should not need to report the refund this year.I did not report it, but I also didn't receive a Form 1099-G last year, just this year for the first time, so that's why I questioned it.Bottom line is that TaxCut should have a help system. If you are really concerned, you may want to contact them or another tax advisor for professional answers.Oh gee, I guess I could - but I like your responses better.FuskieWho supposes that if you did not report the refund and get audited, you could end up owning penalties... Yes, that could certainly be a concern -- appreciate your help!