why is TT asking me how I filed last year when I used TT

You could have amended your return.  To reduce the risk of errors the question is asked, you can answer the question and continue on with your tax return. 

If you transferred your 2023 tax file over to your 2024 return, the software has that information.  If you did not transfer it, then the information is not in your 2024 return.

IS MY 2023 STATE OR LOCAL REFUND TAXABLE?

If you used standard deduction for your 2023 tax return, you do not have to enter a state or local tax refund you received in 2024.   If you itemized deductions then your state or local refund that you claimed on the 2023 return----and received in 2024---must be entered as taxable income on your 2024 return.  If you  are not sure if you itemized for 2023, look at your 2023 Form 1040 line 12.   Do you see the standard deduction amount or something else?

2023 STANDARD DEDUCTION AMOUNTS

SINGLE $13,850  (65 or older/legally blind + $1850) 

MARRIED FILING SEPARATELY $13,850  (65 or older/legally blind + $1500)

 MARRIED FILING JOINTLY $27,700  (65+/legally blind) )  + $1500 per spouse

 HEAD OF HOUSEHOLD  $20,800 (65 or older/blind)  + $1850)

If you need to enter a state or local refund Go to Federal>Wages & Income>1099-Misc and Other Common Income>State and Local Tax Refunds on Form 1099-G