Your state tax refund is only taxable to the extent you received a tax benefit for the state taxes you paid for the tax year to which the refund applies.
See here for further information from the IRS regarding Revenue Ruling 2019-11, which clarifies in more detail the impact the $10,000 "SALT" limit has on the taxability of state tax refunds.
When entering a Form 1099-G in TurboTax, use the section Other Common Income, Refunds Received for State/Local Tax Returns and follow the prompts for additional information.
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