Bottom line is, you need professional help on this. IRS Form 3115 will need to be filed to fix this. While the TTX program does include that form, practically no help is provided for it. The 3115 if not simple by any stretch. So please seek professional help with a local tax professional to get this fixed. Note that it's a double-whammy here if your state also taxes personal income. So professional help is the only logical way to go.
