Kentucky Individual

My apologies for mistaking that your question was about KY treatment of the above-the-line deduction for cash contributions.  It does look like there's a bug in the tax logic.  In this case, itemized deduction should be allowed on the KY return.

@IntuitAustin @IntuitBettyJo  There seems to be a problem in the tax logic for KY in relation to itemized deduction, which should be allowed on the state return regardless of whether the taxpayer claims standard deduction on the federal return.

PTO erroneously limits the taxpayer to claiming standard deduction on the KY return whenever the preparer "forces the standard deduction" on the federal return either because cash contribution is to be deducted above-the-line or because an override for 3=force standard deduction [Override] is selected, even though KY Sch A would produce a higher deductible amount.  This is not a problem when itemized deductions are taken on the federal return.

The most logical solution could be to update the tax logic for PTO to determine automatically when cash contributions should be deducted above-the-line or as part of Sch A.  Otherwise, there should be an override under Deductions > Itemized Deductions (Sch A), on the State & City tab, to "force" itemized deduction on KY, which is not ideal.