It depends. If you use a "Positive Adjustment" on the Federal worksheet to show a payment that’s not reported on a W-2 or 1099, such as an extension payment or a prior-year overpayment, TurboTax may ...
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It depends. If you use a "Positive Adjustment" on the Federal worksheet to show a payment that’s not reported on a W-2 or 1099, such as an extension payment or a prior-year overpayment, TurboTax may flag it as "Not Done" because it’s expecting a specific source for that amount. Here’s a suggestion to clear up the discrepancy and fix the Arizona return.
The cell is red because TurboTax’s smart check looks for a clear source when you make a manual adjustment. Here is a suggestion how to fix it.
If you’re using TurboTax Desktop, switch to Forms Mode. If you’re using the online version, go to the Deductions & Credits section, then Estimates and Other Taxes Paid.
Instead of entering the amount directly into the worksheet, enter it under “Other Income Taxes Paid in 2025” and choose “Withholding not already entered.”
Entering it this way connects your data to the right schedule and clears the “Not Done” error.
Be sure to close your return to save any changes, then open it again to continue working on it
Arizona Line 53 pulls its amount from the Federal "Total Payments" section. If you increased the federal payment with a positive adjustment, it may be making your Arizona withholding too high.. Arizona Form 140, Line 53 should only reflect withholding. If the number is too high because of a Federal adjustment, you’ll need to lower it to match the correct withholding amount.
Arizona Form 140, Line 53 is used only for withholding. If the number is incorrect because of an adjustment pulled from your federal return, check the "State Taxes Paid" section in the Arizona interview. Look for a screen called "Income Tax Withheld" or "Taxes Paid to Arizona." TurboTax usually shows a table with all your W-2s and 1099s. If you see your "Positive Adjustment" as an extra row, remove it from the table.
Keep in mind, the entry you made on Schedule A (Step #8 in your guide) only affects your itemized deductions. It won’t fix a credit or payment issue on Line 53.
If you’re using the Desktop version, you can override Line 53 in Forms Mode by right-clicking it and choosing Override. Just know that this will prevent you from e-filing.
If the "Positive Adjustment" is a tax payment that shouldn’t count as Arizona withholding—like a payment made with an extension—follow these steps.
Remove the "Positive Adjustment" from the Federal Tax Payments Worksheet if you are using the desktop program
Go to Federal > Deductions & Credits > Estimates.
Enter the payment under State Estimated Taxes or 2024 (or 2025) State Extension Payment.
This puts the amount on the right line of Federal Schedule A as a deduction and marks it for Arizona as an estimated or extension payment, not withholding. The amount will move from Line 53 (Withholding) to the correct payment line on the Arizona return, usually Line 55 or 56.