Get your taxes done using TurboTax

The TurboTax program DOES adjust the refund as being non-taxable if the amount of taxes claimed on the previous year's Schedule A was limited because of the State And Local Tax (SALT) limit and if the state tax allowed to be claimed would still have been 10,000 (or more) with the refund subtracted. 

If you use the program to make that calculation, there is a screen where you list the state tax you paid and what you were allowed to claim on that year's Schedule A. 

If the difference is as much or less than the refund, click Continue and the program will report that the refund is non-taxed. 

In my test return, I reported a 100 refund, state tax paid as 11,000 and state tax claimed 10,000 (because of the SALT limit). The 100 refund was considered not taxable.