Now that state taxes are no longer deductible even when itemizing deductions, why is Turbo Tax still indicating that State Tax Refunds are taxable? This makes no sense.
I over estimated my state taxes by $12,000 so I got a state refund of $12,000. On my federal return, I itemized my deductions however State and Personal Property tax deductions are limited to $10,000. So why is TT indicating that my $12,000 is taxable? This seems wrong. I didn't get a tax benefit from the refund.
