If you are stating that MN State directly refunded you $1600 because you overpaid them, and the system (I am assuming) is reading your imported 1098 for the full amount, you can easily go back into that section and edit it. However, if this is in fact the case, the IRS has received this information as well and will be looking for the amount you report on your Schedule A to be exactly what it is on your 1098. Going on little information, I apologize if this is not much help.
The most important thing is that what you have on your Schedule A matches what your received 1098 has. To review/edit this information, follow these steps:
1. At the top of your screen, click on the tab titled "Personal" then click on the grey oval "Deductions and Credits" just below it.
2. At this next screen, select "I'll choose what I want to work on" - you are now on the page titled "Your 2020 Deductions and Credits".
3. You will see at the top of this screen the section titled "Your Home" - you can click on "Visit All" if you want to play it real safe and review
everything that is in there, or just jump right to the property taxes section by clicking on the icon to the right of that section.
IF you did choose to have your 1098 imported and you cannot fix the error (if there is, in fact an error), you would need to delete that imported 1098 and manually enter the correct information from your 1098. I hope this helps.
