Report the entire amount in the 1099-G interview (Other Common Income > Other 1099-G income), and then report the amount repaid as follows:
Type "other reportable income" in the search window (or in the Search Topic window for desktop versions)
Click on "jump to other reportable income (or "other reportable income" in the Search Topic results)
Answer "No" to "Did you receive any other wages?"
Select "Other reportable income" from the Miscellaneous income list
Select Add another Income item on the Other Miscellaneous Income Summary screen
Enter a Description (1099-G Repayment) and the amount repaid as a negative number, then click on Continue
Yes, NY "requires" you to e-file your state return, but you can still file it by mail without penalty of any kind.
