Why, when I have resident trust certified as nontaxable in NY state, is turbotax telling me the trust owes NYS money?

TurboTax automatically moves the trust federal income (specifically just its capital gains, not div or int) and puts that number in Line B of the NY IT-205 form. TurboTax uses this number to then create the trust NY tax liability. The trust ought not to have a NY tax liability as it meets the following conditions • All the trustees are domiciled in a state other than New York. • The entire corpus of the trust, including real and tangible personal property, is located outside of New York State. • All income and gains of the trust are derived from or connected with sources outside of New York State, determined as if the trust were a nonresident trust.  

This is noted in turbotax software by checking a box that states Trust meets conditions of section 605(b)(3)(D). TurboTax further confirms this by generating IT-205C, a statement certifying the trust is nontaxable by NYS. Despite all this, TurboTax tells me I owe taxes in NYS because I/TurboTax can't put a correct figue in IT-205 Line B.