Dammit. I did transfer in December, saw the notice, deleted and then retransferred early in January, but obviously too soon. Ridiculous it took them so long to fix that.  Thank you.

YVW -  This sh*t makes me glad that I wait, wait, wait to do the transfers.

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.