You may receive a 1099-G with information reported in Box 2 if you received a refund of state or local taxes. If you itemized deductions on your federal return in the year you received the refund, all or a portion of that refund may be taxable.
If you did not itemize your deductions or elected to deduct the state and local sales tax rather than the state and local income tax, on your 2020 return, you do not need to complete the worksheet.