Hi there, 

I'm unable to replicate the issue you are both describing... I went ahead and created a KY return that had 10k of itemized deductions.   Enough for KY to itemize but federal takes the standard deduction by default.  So, checked the box to use $300 on fed return with std deduction. I still get the standard deduction for federal and $300 charitable.  But Kentucky still is getting the itemized deduction.

Am I misunderstanding the issue? 

-Betty Jo