I need help reporting a state tax refund.

I can show you how to record or report this state tax refund, @advweld.

You can enter this as bank deposit and record it under the expense account that you used when you pay your taxes. 

Here's how:

1. Click the + New icon, then choose Bank Deposit.
2. Select the correct bank account at the top.
3. Scroll down to Add funds to this deposit section.
4. Under the Account column, select your liability account (refer to the screenshot below).
5. Enter the needed information and click Save and close.

Check out this link for more details: How to record bank deposits.

You can also read this article which can be your guide in managing all your sales tax tasks: Sales tax in QuickBooks Online.

Let me know if there's anything that you need. I'm always here to assist. Have a wonderful day!