Can not enter 1099-G payment, the type of payment does not include state income tax refund?

If it’s asking why you got a 1099G you are in the wrong place.  Delete out of this one. State Refund has its own place.

To enter a state refund just type  1099-G (with the dash)  in the search box at the top of your return and click on Jump To it.

OR  Enter the 1099G under

 Federal on left

Wages & Income at top

 Scroll down to 1099-Misc and  Other Common Income

      You might need click on Show More to expand the section

Then it's the first line for Refunds Received for State/Local Tax Returns - Click Start

     You do not want the next line that says Other 1099G Income

On the first screen check YES - Received a State Refund.