If you received a 1099-G in 2016 from the state you lived in and it was for a state income tax refund, it would only be taxable if you itemized your deductions in 2015. If you took the Standard Deduction in 2015 and received a state income tax refund, it would not be taxable.
If your 1099-G is taxable follow these steps to include it in your income tax return:
Open up your tax return in Turbotax
• Click “pick up where I left off”
• In the search box at the top right of your screen
type “1099-G” and this page should appear:
Where do I enter a 1099-G for a
state/local refund?
• Click the blue box “Go to 1099-G” and carefully
answer all of the questions regarding your state income tax refund.