So, today, after receiving some of my final tax forms (1099- HSA) and interest statements from different sources I reran the program, and paid particular attention to the AZ form.
The AZ form asks you to enter your total charitable deductions. It also asks how much of the state tax credit for those contributions you will claim, and subtracts that amount from the total contributions. It will then calculate how much the other contributions would reduce your state tax if you are not itemizing the Federal form, and reduces your state tax that amount. However, it disallows any contribution that is NOT listed on the Schedule A.
Therefore you MUST enter the charitable contributions on schedule A in order to get the correct state tax if you are not itemizing federally.
This results in the same issue occurring again with the $300, instead of the $600 amount being entered on the 1040 worksheet and on the 1040, after the final review done after the state tax is done. The $600 figure is correct on both forms until the state tax is done.
This time, even WORSE, the final review did NOT flag it as an Error and said everything was correct, and simply miscalculated the federal tax, thereby reducing my refund by $66. When I looked at the forms after the review the 1040wks did show the 300 figure as an error. I then corrected the figure to the correct $600 and did not redo the review and the federal refund regained the missing $66.
Frankly, it appears that some change may have done to this process which actually made things even worse.
I am extremely disappointed.
