The TCJA limits the state and local tax deduction to $10,000 ($5,000 if married filing separately). This deduction limitation is applied to the combined state/local income taxes or general sales taxes, real estate taxes, and personal property taxes. The limitation does not apply to foreign income taxes and other taxes.
But why would this ever display negative? And would this affect my return? There is no entry that is negative for this in my input data. In some places, it seems this is an old issue from past TT versions when importing a prior return but I wouldn't expect this to be in your latest 2022 product after being aware of the issue a year or two ago.
It isn't an "Old" issue, it is deliberate.
If you have a negative number, such as you do - 3,390
you know that 3,390 of state tax that you paid was not allowed to be included in your Itemized Deductions because of the Sate And Local Tax (SALT) limit.
You can use that amount as a reference if you get a state refund.
When determining if a state refund is taxable NEXT year, you can compare the refund amount to the 3,390. If the state refund is 3,390 or less, it will not be taxable income since it would not have affected the 10,000 you were allowed to claim.