So, here is proof that this issue is the TurboTax software processing. I just created an account at H&R Block and entered my exact same information there. The federal calculations matched TurboTax. However, the NY State results were far off! H&R Block correctly processed the NY State return correctly whereas TurboTax does not. I suspect it has to do with the treatment of the COVID retirement distribution from what I can tell. So, Intuit, please fix this issue. Thanks!
