Why? TT uses my AZ State Tax credit carryover amounts from 20/21 to reduce my AZ Schedule A deductions. (The amounts were not deducted as Federal charitable deductions.)

[dave563630]

Apparently, TurboTax assumes I previously took a deduction Federal Schedule A for these amounts, but that has not been allowed since 201, and I did not. I've gone through the TurboTax state tax 5 times trying to figure out, but I can't find anything I'm typing in that makes this happen. Problem with the TurboTax program? If so, how do I get it fixed?

[JohnW152]

No, there are no known issues with your scenario.

However, it's possible that what you're seeing isn't a "carryover" amount. 

A credit carryover typically occurs when a taxpayer is entitled to a credit in a tax year, but the credit amount is greater than the tax amount; if allowed by law, any unused credit amount carries over to the next tax year, to apply against that year's taxes.

Arizona has an adjustment for charitable contributions when a taxpayer has taken an Arizona credit for charitable contributions:  if a taxpayer has claimed a credit in Year 1 for a contribution made in Year 2, an adjustment must be made on the Year 2 return, even though the credit was claimed on Year 1 return. 

According to Line 6 - Adjustments to Charitable Contributions in the Form 140 Schedule A Itemized Deduction Adjustments:

If you claimed a credit on your 2021 return for a contribution that you made during 2022 (see Arizona Forms 321, 322, 323, 348, and 352), you must exclude this deduction on your 2022 return, even though you claimed the credit on your 2021 return.

This may be what you're seeing.

[gem23]

I believe there is a bug in the AZ State Tax credit sections when you have carryover amounts from previous years and have used TT in previous years.  I use Turbo Tax Deluxe CD/Download software.

For each credit in the State interview section, the default amount entered by TT on the screen labeled "Deduction Entered on Federal Return" is NOT the current year amount, but the available carryover credit plus current year (i.e. Total Available Credit found on AZ Form 301, Part I, column (c)).
I overrode those default amounts and entered the current year amount instead. 

In response to JohnW152, my current year contributions were made in 2022 and those dates were entered in TT.