I'm still confused about whether TurboTax is working correctly. While it is apparently true (if I'm understanding your situation accurately) that in many cases the limitation on the MN Standard Deduction is lower than the Itemized Deductions, that doesn't seem to me to be end of the story. Isn't it true that you still want to take the Minnesota Standard Deduction because although it will be slightly lower than your Itemized Deduction, you can then take 50% of your charitable deductions on your MN return and, thus, your overall taxable income for MN will be lower?
Am I misunderstanding the situation? Which I believe is my situation.
