Okay...Back again. I created the test return and saw what you were describing.
The situation would only occur if both of you used itemized deductions in the prior tax year on Form 1040 Schedule A and the itemized deductions were greater than the standard deduction for your filing status. For tax year 2015 since you were filing as Single the total itemized deductions on Schedule A would have to be greater than $6,300.
You are correct, the program will only take the entries for one taxpayer to calculate the correct amount of state tax refund to enter on the 2016 tax return if the person used the itemized deduction on the prior year tax return instead of the standard deduction.
So my question is, did both of you use itemized deductions on your 2015 tax return? The entry would be shown on the 2015 Form 1040 Line 40 and the amount shown would be greater than $6,300.
