I was beneficiary to a sum of money from another state. It appears from the 1099 that I paid taxes to the state from which it came. Should I file a return for that state to recoup that money? Do I declare this income in the state where I live and pay those taxes?

It would help if you could tell us (a) what state the taxes were withheld for, and (b) what state you actually live in. Also, did you recently move from the former state to your current state?