It appears the Proseries program has marked all transferred information as state income taxes being done as general sales tax for the previous year rather than the as the actual state income tax deduction on from schedule A of the prior year return.

This is by default causing all the state refunds to be calculated and reported as non-taxable for the current year, when they should be taxable (fully or partially) in most cases.

This looks to be a BIG SNAFU in the programing.