@Accountant-Man  "DON'T PUT IT ON THE RETURN, AND IT WON'T BE DEDUCTED."

But she wants to put it on the state return because she wants real money back from the state.  

I'm thinking this is something like a 1099R annuity payout of $10,000 with $500 state income tax withheld.  (Why did they ask for withholding?  Who knows.)  The taxable income turns out to be zero, after other deductions.  

It's all a part of the e-File game -- it's not what you know about tax law, it's what you know about data entry.  File the federal return first, without the deduction, then input the withholding and file the state return?  Maybe one or both should be a paper return.  Guess what:  it's not the end of the world as we know it. 

"Quarantine should be two weeks.  A fortnight is not long enough."