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Did you enter your WI state refund or go through that section yet?    TurboTax is asking for the amount from your 2020 Schedule A, line 5a.   If you receive a tax benefit from your state refund, it may be taxable.   Go through the state refund section again and you will be able to provide the necessary info to clear the error.   

Report last year’s state or local tax refund, and we’ll figure out if it’s taxable or not.

If all three of the following are true, your refund counts as taxable income:

• You itemized deductions last year, instead of taking the standard deduction
• You claimed state and local income taxes (not general sales taxes)
• Claiming the deduction helped you increase your federal refund or lower your tax bill

Even when your refund is taxable, it may not be the entire amount. It depends on how much the deduction affected your refund or tax bill. Just answer a few simple questions about last year’s refund, and we’ll calculate the taxable amount for you.   This is what is causing your error - TurboTax doesn't have all of this information, yet....Even if you did not get a 1099-G last year (because you itemized), use the link below to go through that section.  

• Where do I enter a 1099-G for a state or local tax refund?  

If you took itemized deductions on your 2020 tax return, Schedule A is filed with your 2020 Form 1040. 

You need to locate your Schedule A form in your federal return. 

@Jstrangfeld23