You are correct. You cannot have a taxable MO state/local refund amount that exceeds the total taxable state/local refund amount found on your 1040 Schedule 1, Line 1. So if your state/local tax refunds are non-taxable (zero on Schedule 1, Line 1), then in the MO state interview when you are separating items between taxpayer and spouse, you arrive at a page asking you to allocate the state/local tax refunds. If none of the refunds were taxable, you need to enter zero in the boxes for taxpayer and spouse.
Your entries in the MO state interview for state/local refunds cannot exceed that Schedule 1 amount.
The "Learn More" hyperlink on that MO interview page explains that only "Taxable state/local refund amounts" are applicable.
Of course if there is a taxable amount on Schedule 1, Line 1 then you should put in whatever part of that amount is MO refund and allocate to each spouse.
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