I am getting this error as well. This shows up at the end of the Missouri state review when TurboTax runs Smart Check.
My situation is this:
- I'm a non-resident of Missouri but work in Kansas City, MO
- Last year I did not have a MO refund
- I filed RD-109NR for KC local tax refund for working virtually
The smart check doesn't like that I have 0 for last year's Total State and Local Refund for 2020, but I have a positive value for Refund from 2020 KC/St. Louis. The message says "TP-Kansas/St Louis Refund should not exceed the prior year state and local tax refund reported as taxable on your Federal return." The value I have entered for my refund from KC is less than the local taxes to MO on my W2. So I am really confused on why this is an error. You can continue forward without smart check to proceed, so this is not stopping me, but obviously as a non-tax expert, it would feel better if this was not flagged as an issue.
