No, TurboTax is not wrong unless you somehow received a State Refund AND made a State Balance Due Payment for the same State in the same year.
This would be very uncommon if not impossible since even if somehow a Taxpayer received a State Refund, and then amended the state return and owed a State Tax Balance Due which they then paid that same year, the State would adjust the 1099-G to reflect that and only report the final amount refunded.
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