re: 1099G State Form

I dont really understand how its considered new income and not income already taxed.

If I make 100 in Year 1 and uncle same take 20 dollars of it for himself then the State takes 10 dollars of it but should have only taken 5. Then how is getting my 5 dollars back new income? The 100 dollars was already taxed at 20% by Uncle Sam.

Im guessing it has more to do with state taxes being deductable. So paying the diff of the deductable amount may be what is goign on. Never paid enough attention to it.