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I called New York State Department of Finance and they said that I'm being refunded the full amount of the dispute, $18.52. While on the phone with them, they did the computation by hand and said that the numbers on my return, as done by TurboTax, are correct. Since I'm getting a full refund, it's clearly their error. I asked them the reason for the discrepancy, and they said that I'll be getting a notice in the mail describing the reason.
I'll share it with you when it arrives.
I received the letter of explanation from New York State. There's no reason stated why they backed off of their original computation indicating that I had an error. Basically, they just accepted the numbers in my return as calculated by TurboTax.
End of Story.
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