You might be entering it in the wrong place.
Enter the 1099G under
Federal on left
Wages & Income at top
Scroll down to 1099-Misc and Other Common Income
You might need click on Show More to expand the section
Then it's the first line for Refunds Received for State/Local Tax Returns - Click Start
You do not want the next line that says Other 1099G Income
On the first screen check YES - Received a State Refund.
But you might not need to enter it at all.
A State Tax Refund is taxable if you itemized deductions on that prior year's federal return and took a deduction for state income taxes instead of the sale tax. You got a deduction benefit for it so now you have to include it as income. If you took the standard deduction it is not taxable and you don't need to report it.
