You have entered the information in the wrong area.
The most common uses of the 1099-G is to report unemployment compensation, as well as any state or local income tax refunds you received that year. I believe your 1099-G is for state or local income tax refunds.
Delete the information for the 1099-G in the Unemployment section, then enter the form again per these instructions-
Important: If your 1099-G shows an amount in Box 1, go here for alternate instructions, as the steps below won't work.
Otherwise, if your 1099-G has amounts in Box 2, follow these instructions:
- With your return open in TurboTax, search for 1099–G (don't forget the dash!) and then select the Jump to link at the top of your search results.
- This will take you to Did you have any of these types of income? Answer Yes.
- On the following screen, check the first box State or local income tax refunds and continue.
- Answer Yes to Did you get a state or local tax refund?
You should end up on the Tell us about your refund screen.
