Schedule A, line 5e only lets you deduct up to 10,000, even if you are over 10,000. So for the sake of argument, let's say in 2021 I withhold 11k in state taxes and my actual tax is only 9k, so I get a 2k refund. On Schedule A, I can only deduct 10k of the 11k, so I lose 1k of deductions. But on 2022 1040 Schedule 1, I have to report a refund of 2k, even though in 2021, I was only able to deduct 1k of that 2k. This seems unfair and like I am getting penalized for withholding too much. Is there a remedy for this?
