This is for the downloadable TurboTax. I had the same issue with withholding in error by a neighboring state. There was no question in the step by step procedure, ever asked if withholding was in error. After searching through the state tax forms I found that there was a box to check if withholding was in error. Checked the box & all the calculations went away. All state tax withheld was now shown as refund. I think question should be asked when preparing state tax.
