Yes. TurboTax is calculating the CO "Addback" correctly.
Per CO Income Tax Topics: State Income Tax Addbacks Revised February 2024 line 5 instruction reads:
"5) Subtract lines (2), (3), and (4) from line (1). Enter the result, but not less than $0."
Line (2) instruction reads:
"2) Enter any local income tax deduction included on IRS Form 1040, Schedule A, line 5a"
Line 2 does not include any state income tax deductions only local income tax deductions.
Therefore, in your scenario line 2 will be zero, line 3 will be 6,376 and line 4 will be 201. So the total of lines (2) (3) and (4) is 6577. Subtract that from line (1) 10,000 yields $3423.
Compare to line 8 $1957 in your scenario and that results in an "Addback" of $1957.
Further, page 1, CO Income Tax Topics: State Income Tax Addbacks Revised February 2024 reads:
"Limit on state and local tax deduction:
For tax years 2018 through 2025, federal law limits the total amount of state and local taxes an individual may deduct on their federal return to $10,000. If a taxpayer’s total federal deduction for state and local taxes is limited to $10,000, the required addback is equal to the amount by which the $10,000 limit exceeds the sum of all state and local taxes, other than state income tax, for which a deduction was claimed on the Schedule A of the taxpayer’s federal return."
@KB_CO
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