I keep getting a message from Turbo Tax stating that my AZ refund cannot exceed my federal refund and it does not, how can I fix this?

We have seen this message appear where the user was reporting their Arizona refund as income and the user had taken the standard deduction. Is that the case on your return? If so, see below:

 

You should not claim the State refund on your Federal return if you did not benefit from it by taking an  itemized deduction for State income taxes paid. 

 

Go back to your Federal Interview and remove the income shown for State refund. With your return open in TurboTax, select Income & Expenses to open the Income and expenses summary screen.

1. Scroll down to Other Common Income and select Show more.
2. Remove information in State or Local Tax Refund section.

Or, delete the form using the steps below in TurboTax Online:

• Open your return in TurboTax.
• Sign in to TurboTax, and click the orange Take me to my return button.
• In the upper right corner, click My Account > Tools.
• In the pop-up window, select Delete a Form.
• Click Delete next to the Form 1099-G.