Deductions & credits

The file requested is attached and the state is CA.

The problem is the TT worksheet for state refunds (line 19) states for itemized deductions in 2025 to NET the non-taxable state refund received in 2025 for TY 2024 with the state 2024 extension payment made in 2025 for TY2024. This is directly contrary to the  IRS instructions in Schedule A line 5a that says do not reduce your 2025 schedule A itemized state taxes and to (only) evaluate the state refund for taxability. I have confirmed that the IRS statement is correct with an enrolled agent and with AARP Tax-Aide that TT is incorrect iand way overconservative n their interpretation in TT explicit implementation in the TT state refund worksheet.

TT correctly identifies my refund as non-taxable but incorrectly subtracts it from 2025 paid state taxes with includes a 2024 extension payment.  While this may sound logical, per my late spouse (a CPA) drilled into me "the tax code is rule based, not logic based.