Yes, you should change your W-2 entry if you really got a 1099-G.
To clear the W-2 entry:
- Log into TurboTax.
- Select Federal
- Wages & Income
- Select Wages & Salaries.
- Identify the W-2 [Edit/Add]
- Delete the record
To enter the 1099-G
- Go back to Wages & Income
- Choose between
- Unemployment 1099-G or
- Other common Income
- Other 1099-G income
- This is everything except unemployment.
If you've already filed your return you can Amend it.