Have an apparent error in Turbotax Premier desktop edition for the State of South Carolina 2022 Individual Income Tax calculation. SC does not consider income or losses from property sales out of state for the purposes of SC income determination. Turbotax allows the reporting of that income as "Out of State Gain" and excludes that gain from SC income (even though it is counted as part of Federal Income and income in the state that the capital gain was earned). However, since SC also excludes 44% of LT Capital gains from taxation, the total amount that Turbotax uses to determine that 44% exclusion should also remove that Out of State Gain from the total LT capital gain. Turbotax is picking up my ENTIRE LT capital gain and giving me a credit (vs. excluding the Out of State Gain" as it should) resulting in a Turbotax miscalculation of the income credit (a subtraction from Federal income per Turbotax terminology) associated with that LT capital gain 44% credit. Confounding the problem is that Turbotax is also not letting me override the incorrect figure that it is using for that LT capital gain with the correct figure. The only "work around" that I was able to develop was to enter supporting details with the Out of State Gain reported as negative income, the total capital gains (from Fed. Sch. D) as positive income and the difference between the two figures (in my case, a capital loss carryover) to get the calculation to show a zero (0) sum. Will let me file this year's taxes since the supporting detail override was not picked up as an error during the error check. However, the capital loss carryover for SC will need to be carried by me manually and entered into next year's return vs. Turbotax picking up the value and entering it on it's own next year. I did talk to a representative of Intuit - got the issue recorded and validated with the "next level" and was told that it will be considered for resolution with Turbotax's bulk review improvement set associated with South Carolina tax computation errors. Was advised by the phone agent to repost the problem here to increase visibility of the issue until Intuit/Turbotax resolves it.
