You are entering the 1099-G in the wrong place. Do not enter it under "Other 1099-G Income." There is a specific topic for state income tax refunds. Here's how to enter a state income tax refund in TurboTax.
- Click the Federal Taxes tab.
- Click Wages & Income.
- Click "I'll choose what I work on" or "Jump to a full list."
- On the screen "Your 2016 Income Summary," scroll down to the section "1099-MISC and Other Common Income."
- Click the Start, Update, or Revisit button for "State and Local Tax Refunds on Form 1099-G."
