It is good that you noticed that your combined Federal and
state is better when you itemize instead of use the standard deduction.
TurboTax most likely only considers the Federal return when
making the recommendation to use the standard deduction. Because you have to complete the Federal
information completely before proceeding to your state returns, the comparison
may not be made at the end of the state returns as well. That would be a great recommendation as a
program enhancement.