AFAIK only the NY (and I think one other state but I don't remember which) cares if box 16 is blank (and a blank box 16 assumes the box 1 amount).
"...that state deduction can never be greater than the $$ included in Federal income...."
That amount is not based on box 16. What is included in Federal income is what in on the 1040 line 4b or 5b.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
