In my case, a541 for 2021 had 14K of CA income tax withheld from a real estate sale (and it was refunded correctly.) This 14K income tax deduction did not cause any excess deductions. In fact, there were no excess deductions.  

Therefore, no tax benefit arose and none of that 14K should be taxed.   BUT, Lacerte is treating the entire 14K tax withheld as taxable income in 2022.

I'm going to delete the taxable income.