You are entering your 1099-G in the wrong place. Your 1099-G with an amount in box 2 is for a state or local income tax refund, but you are in the TurboTax topic for entering unemployment benefits. There is a separate topic for state and local tax refunds. To enter your 1099-G, in the Search box type "state and local tax refund" without the quotes. Then click the link that says "Jump to state and local tax refund."