Deductions & credits

I don't believe the right answer is to make entries that provide the correct results in this case.  This is a federal return issue, not a specific state return issue.  The IRS has provided guidance on how to deduct charitable contributions that are also state tax credits in the instructions for Schedule A.  There is a safe harbor that you can qualify for allows you to apply the state tax credit as state taxes paid in the year the credit is applied.  This is independent on your state of residence.

 

It is too late for this year so the workaround that AmyC suggested is all that can be done for 2025 taxes.  For future years I recommend Turbotax is updated to allow the user to apply this safe harbor rule when entering itemized deduction data in Turbotax.