Iowa STO Contribution for Federal itemized deductions and tax credit for Iowa

[TJSmith57]

I use TurboTax Home and Business 2024 desktop version. I made a $1,000 contribution to an Iowa STO and Iowa STO reporting information indicates that this contribution cannot be claimed as both an itemized deduction and a credit. I have three related questions:

1> Do I understand that the full $1,000 can be claimed as a Federal contribution?

2> How do I remove the $1,000 as an itemized deduction from my Iowa return and claim the credit for Iowa?

3> If the credit is more than my tax due (after Iowa income tax withholdings), can it be used to obtain an Iowa tax refund, and if not, how can the excess credit be used?

[VictoriaD75]

These contributions are not deductible on the federal return, so they must be entered directly in the state. According to the Iowa Department of Education, Iowa taxpayers who donate to STOs are eligible for a tax credit equal to 75 percent of the total contribution. The STO must represent more than one school and 90 percent of its annual revenue must be used to provide tuition grants to eligible Iowa students to cover all or part of related tuition costs.

The tax credit from the state of Iowa is nonrefundable. This means the best it can do is reduce your tax liability to zero. Any unused credit is lost and cannot be carried forward or paid out as part of your deductible. 

From the mend on the left side of your screen select  State Taxes > Your State Returns 

Next screen, select Iowa and Start ( Make sure you select Iowa as your state and mailing address under "My Info")
Follow prompts.
On screen, Nonrefundable Iowa Credits and Carry Forward Credits, select Yes 
Next screen, Enter Your Nonrefundable Credit, at the drop down, select School Tuition Organization Credit. 
Fill in information on the screen and select Continue.

@TJSmith57