We live in Maryland. I'm inclined to think it's a bug in the software because last year I had this same issue (our tax bill was way high for seemingly no reason--income didn't change, no job change, no family change, etc.--and it was just recategorizing the line item from "A" to "E". I did the same thing this year and for some reason it's not applying the change--it's categorizing the income set aside as income we didn't pay federal taxes on. :(
