My state income taxes for 2018, net of the refund I received in 2019, exceeded the $10,000 limit for Schedule A. Why is Turbo Tax insisting that the refund is taxable in 2019? In rough numbers, I paid $15,000 state income taxes in 2018, received a $1,200 refund in 2019. So I paid net state income taxes of $13,800, but only got a $10,000 deduction.
I contend that I got no federal tax benefit in 2018 for paying the $1,200 I got back in 2019.
