New York State refund being treated as taxable income in TurboTax when I know it shouldn't be

New York State refund being treated as taxable income in TurboTax when I know it shouldn't be - details inside

Hi Pros!

I'm doing my 2023 taxes now, so I logged into the IRS website to check my "Wage & Income Transcript" and I see that New York State has reported a 1099-G for year 2019 for the amount of $5,000. This $5,000 was paid as "estimated taxes" and I ended up owing nothing to NYS, so they refunded me the full amount of $5,000.

Am I correct in thinking that this $5,000 should not be considered as taxable income? If so, how do I prevent TurboTax from treating it as taxable income in the "state refund section"?

Thank you!

posted