If you used TurboTax last year, and you are using the same account this year, TurboTax will calculate the amount of refund that is taxable from the information that is carried over from the prior year.

If you did not use TurboTax last year, once you input the Form 1099-G, you will be asked questions about your prior year return.

• You will be asked how much your refund was,
  
• The total of all your withholding and payments (state),
  
• Do any of these apply to you (See the screenshot below)
• When you see State and Local Tax Refund Summary, click done
• You will then be lead through a series of questions about your 2016 tax return.