Hi,
I had the exact same thing happen on my CT State return. I even had a call with a TT EA where we went through all of the entries and could not find anything wrong. TT was calculating a state refund of more than than the amount withheld. I figured I needed to see the actual forms in order to see where the mistake occurred. So I paid but didn't file so I could print my tax forms. I found it in an obscure form where I had to make an entry through a TT Smart Check. Smart Check is a dangerous TT tool where the user has actual access to the forms and worksheets and can enter numbers that will override or add to the numbers you enter through the usual question and answer format. What's worse, you have no access to correct any smart check entered item unless it happens to pop back up again.
I am guessing that you went into your W2's and entered "0" for state withholding because somewhere in the worksheets that TT uses, the amount of state withholding was entered and you have no visibility or access to correct that number. The math on your return is now correct but you may have issues down the line with the electronic matching between the forms the IRS and state revenue departments get and what you have entered.
My issue is once I paid but didn't file so I could check the forms, I caan't clear everything out and start over. TT does not let you do that. I am at the point where I just deleted all w2's and 1099's and am going to re-enter everything. I have a tax form now that shows 0 income, no withholding, but I get a CT state tax refund of the amount that was actually withheld. That proves that there is a bad number somewhere within the TT worksheets equal to the exact amount withheld. I am hoping that I can trigger the smart check where that amount was entered so I can delete it.
Otherwise, unless TT will credit my account so I can start over from scratch, I will be forced to dispute the TT charge on my credit cards as they have failed in their promise to deliver a product to me where the calculations are 100% accurate. There should be a check in the program that says it is impossible to have a refund with $0 withholding.
