Thanks for responding Hal and Mike
IRS Pub 525, page 36 offers two methods for 'Claim of Right.
a) Deduction:
When I use this method, using TurboTax, on Federal Schedule 3, the data automatically transferred to my state tax return.
b) Credit:
When I use this method for Federal, the data does not reflect in State return. however, it results in a less Federal tax (and more refund)
So the question is: Is it permissible that I use 'Credit' method for Federal and 'Deduction' method for Sate (by directly updating KY state Schedule A) -- Technically, yes, TurboTax allows me without any error in the tax return. I could not find any rules in favor or against this. Hence, my question in this forum
Appreciate your time
Regards
Zulfi-
