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By KW-2, you mean the Kentucky Schedule that shows "KENTUCKY INCOME TAX WITHHELD"?
What calculation error are you referring to?
It pulls in a fictitious tax amount that was not paid on interest income & uses that number to calculate the total tax paid. No matter how many times I manually change it to zero & enter the correct state income tax paid per the W-2, it still calculates my refund with the incorrect figure, creating a 40k state income tax credit
Have you gone back and double-checked your entries in the federal section? Go back to the federal and check all of your W-2s and 1099s for typos. And also, step back through the state interview.
I no longer have access to my entries on the federal return because it's been filed. However I can see a downloaded version & there are no errors on the form. I was on the phone with a Turbo Tax rep earlier today but the call/screen share got disconnected
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