State tax filing

I'm confused.

 

The instructions for NYC-1127 specifcally state:

 

NOTE: The payment required by Section
1127 of the New York City Charter is not
a payment of any City tax, but is a payment made to the City as a condition of
employment.

 

but TurboTax is applying it in my IT-201 state return as Total New York City Tax Witheld.

 

I contacted TurboTax support, and they said it is correct, but it is in clear contradictoin to the 

Note in the NYC-1127 instructions.