I entered information about extension payments to both states and the refunds received. TT is making a calculation that nets only a small portion of the unnecessary extension payment against the refund. I itemize and with the limit on state and local tax deduction on Schedule A, this results in my reporting more income than appropriate.
I SHOULD be able to net the full extension payment against the refund. How can I make this happen?
Details:
State 1: Extension payment $900; refund $1400. (Tax withheld in 2017; no tax withheld for State 1 in 2018.)
State 2: Extension payment $1,700; refund $5,540/ (Tax withheld in both 2017 and 2018).
