Question
I entered a refund for Kansas City earnings tax. It is deducting it from MO 1040 income as if it's a state tax, but earnings tax should not be deducted. Is this bug?
When 1040 itemized deductions are calculated, KC earnings tax is taken out so only state taxes are used. The KC Earnings tax refund I entered, and I specified Kansas City, MO, is being deducted from my income on form 1040. This is incorrect. Did I enter the refund incorrectly or is this software bug?
