If you did the prior year's tax return with TurboTax (along with the prior year's state return) AND you itemized deductions then TurboTax would prompt you to add the state tax refund that you received as income for the following year.
If you did not prepare the prior year's tax return with TurboTax then you would enter the 1099-G under '1099-MISC and other common income'. The first choice in that section is 'State and Local Refunds Reported on form 1099-G'.
Either way, when entering the information into that section from your 1099-G TurboTax will ask you a whole slew of questions to determine whether your refund is taxable or not.
@srtaylor1317
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