Furthermore, TurboTax is inconsistant. If the state surplus payment is listed as being applied to furture state taxes rather than a cash refund, it is properly treated as a 2025 additional state payment with no corresponding subtraction just because you made 2024 state payments in 2025.
One source said "This is a software limitation, not the law.... The 2024 refund should NOT reduce your 2025 Schedule A."
TurboTax accuracy guareentee is very limited. In only covers tax penalties for paying too little, It doe NOT cover overly conservative (inacurrate) calculations that cost the taxpayer money, but does not result in penalties.
