That is incorrect.
Any donation that receives a certain percentage of a state tax credit (not sure the threshold, Arizona is 100% so that is easy) should not be deducted on your Federal return.
Technically, you could add it as a deduction on your Federal return but ONLY if you do not receive a state tax credit (which is worth much more) or donate more that the state tax credit you received (and only the difference would count).
Really wish TurboTax would add this warning in for residents of certain states with these state tax credits.
