"Total of all your payments and withholding” means the program is asking for the amount of state/local tax that you paid in Tax year 2017. This would be listed on any income documents you had, such as a W2 and/or 1099 as well as any payments (such as state estimated tax payments) you sent to the state/local tax agencies.
The 1099-G you get for a state refund is reporting what the state sent to you as a refund in 2018.
As you work through TurboTax and enter the refund, the program needs a lot of information to calculate the taxable part IF there is a taxable part. The amount of state tax you paid in 2017 is needed for this calculation.
If you took the Standard deduction on your 2017 return, the state refund is not reported as income.
If you itemized on your 2017 return, but you claimed sales tax rather than income tax paid, the state refund is not claimed as income (you did filed Schedule A but you checked box 5b, NOT 5a).
If you itemized on your 2017 Federal Tax return, and you took a credit for state income tax paid, (5a) you now must claim (at least part) of that refunded state tax as income. The program will ask the questions needed for the calculation of the taxable portion.
