Thanks Dawn, that explains it well, but TurboTax didn't lead me to get the maximum refund.
I see in the example you provided it says: "We’ll figure this out for you in Deductions Credits and let you know which deduction saves you the most money based on your situation", but the TurboTax program didn't do that for me.
When I entered my property tax deduction amount, the Federal refund stayed the same, but the MN State refund DECREASED by $648 and I saw this message:
Property (Real Estate) Tax Deduction
Your property (real estate) tax deduction just saved you money on your taxes this year.
You have now maxed out the federal $10,000 deduction for itemized state and local taxes.
Any entries over the $10,000 limit won't impact your federal tax outcome, but may still benefit you on your state tax return. We'll include them automatically if this applies to you.
The tax deduction did NOT save me money. My Federal refund stayed the same but my State refund went down. If I leave out the property tax amount, TurboTax prompts me to enter it, which would reduce the amount of my state refund.
It's not right that others in my same situation aren't being prompted about this. TurboTax claims to guarantee you will get the maximum refund, but that's not happening here. I would call TurboTax again but I don't feel like spending hours on the phone since I've spent so much time on this already.
