Yeah, @JPP2403 , that's exactly the problem. TurboTax is not following those instructions for the tax portion of itemized deductions. It is capping them at $10,000 if they exceed that rather than adding the sales tax and real estate tax together, presumably since the max taxes you can itemize is $10,000 (per itemized ded line 5e). If the IRS wanted to cap it on Form 1116, you'd think they'd state that on Form 1116's instructions in the part you quoted.
