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I share your concern.  I actually have not filed yet.  I will be owing money so I'm not in a huge rush.  I was sort of hoping I would get a better answer to this question if I waited.  Unfortunately, that's not happened.  I agree - I would think the software can be fixed to not require you to change information that's on a valid tax form.  Incidentally, I've been receiving the same 1099's for years - they never have a state distribution listed and this is the first time TurboTax has generated this error.  Doesn't make sense.