Get your taxes done using TurboTax

It depends. The error "must exceed sum of individual payments" means the software sees a discrepancy between the manual entry you made ($400) and the actual data pulled from your 2023 tax records.

1. The Solution: You should enter your actual total 2023 NY State tax payments (withholding + any estimated payments) in that field, rather than matching it to the $400. 
2. Why? As long as your total 2023 payments (e.g., $2,000) are greater than your total 2023 refunds (Original refund + $400 Inflation check), the error will vanish.
3. Is it okay if it's a different number? Yes. In fact, for the State return, it needs to be the accurate total of what you paid New York in 2023 to satisfy the software's audit check.

2. Ensuring the $400 isn't Taxed by NYS

You mentioned that the worksheet shows a “taxable refund of $400.” In tax terms, “taxable” usually means it’s subject to federal tax. Since you live in New York, the software automatically includes that Federal "Other Income" on your state return. We just need to remove it from your state filing.

To ensure you aren't paying state tax, verify these two spots in your New York State return section:

1. Look for "Subtractions from Income": Navigate to the NY State taxes section and look for a screen titled "Changes to Federal Income" or "Subtractions from Income."
2. The S-138 Subtraction: You are looking for an entry for NYS "Other" Subtractions. You should be able to select a code (often S-138 or simply "State Tax Refund") to subtract that $400. This ensures that while the $400 is added to your Federal Adjusted Gross Income (AGI), it is subtracted before NY calculates your state tax.

Let us know if this helps!!

@jengakatz