In the ProSeries application click on Where Do I Enter? Click on State Tax Refund Worksheet. Scroll down to Question C. The program automatically checked #2 General sales taxes (2017 Schedule A, box 5b, was checked). Click on #1 Income taxes (2017 Schedule A, box 5a, was checked) if the taxpayer deducted state income taxes on their 2017 Federal tax return as such. This resulted in reported the 2017 state income tax refund correctly on taxpayer's 2018 tax return.