My state/local income tax refunds for 2020 is 1,535, and the state taxes I paid for 2020 is 11,079, which exceeds the limit of 10,000 for itemized deduction so I chose to deduct 10,000 for my federal return. However after the refund the actual payment I made is just 9,544, which means 10,000-9544 = 456 should be taxable income for 2021. I was a F1 student in 2020 so there is no way I could have use standard deduction. (See the pic for my worksheet 2020 tax return)
The issue I'm facing is that my TurboTax 2021 is always saying my 2020 refund is not taxable. I follow all the instructions the pic below is the information I put in. I don't know the logic in the underlying system but it just looked no right to me. Appreciate if anyone can help me out. Thank you!
