I agree that's what is happening. However, that is not how it should be calculated. TurboTax has the ability to identify local income taxes but it doesn't when it gets to the Colorado module. The worksheet should follow the methodology outlined in the publication instead of what it is doing. I was not able to find a way to override it. Since it was not material in my case, and it is the last year I have to file a Colorado return, I let it flow through to the return. It may have a bigger impact on other filers.
