It's asking about the 'type of government payment' on my 1099-G form but the payment it refers to doesn't exist in my form and TurboTax is not letting me change it. Help!

You are i the wrong place.  What did you get it for?  A state refund or unemployment?  Each has a special spot.

 

For unemployment...

Unemployment has its own spot higher up right under wages.

 

You can  type  unemployment   into the search box at the top of your return and hit find.  It should give you a Jump To link to take you right to it.

 

Or Enter a 1099G for unemployment under

Federal on left

Wages & Income at top

 Unemployment - Click the Start or Update Button

I submitted it as unemployment/PFL but it's reading it as if it's the other type so it's asking me about box 8 $2,020 which on my form is actually blank.

Unemployment you enter goes to Schedule 1, Line 7.   Then on Line 8 (of Schedule 1, not your 1099-G) you should see a subtraction of your unemployment (up to $10,200).   What are you being asked?   And is it referencing an amount of $2,020 or the tax year 2020?

 

If you had less than $10,200 of unemployment, none of it is taxable and Line 8 will offset Line 7, leaving no taxable UE income on Form 1040.    See example below.