It sounds like the estimated state tax payments were put in the wrong category for TurboTax to categorize them as income.
You would go to the
1) Deductions and Credits tab
2) Scroll down to Estimates and Other Taxes Paid
3) Click the "Estimate" tab
4) You will see "State Estimated Taxes"
a) You would then put in the payments you made to the state
This should stop those payments from being classified as income and let you itemize. Be aware there is a cap on property and state taxes for $10,000.
