I'm not sure this is correct. Schedule A has a line item (5a) for indicating your state taxes paid. If the total tax (line 7a) exceeds the max it is reduced to the maximum allowed. But it doesn't indicate which of the three entries was used for that $10K amount. The state tax was still used in the calculation thus you should get a 1099-G for the state tax refund. And looking over the Schedule 1 Line 1 worksheet it doesn't task into account which of the three items were used for the deduction; just the reduced amount.
Since I have enough property tax to exceed the maximum I would rather not include the state tax paid at all. It just isn't making any difference in my deduction. Thus, if i don't include it, I shouldn't get a 1099-G next year for the state tax refund. But TT doesn't seem to le me change that without altering my W2 info. Any idea how I can tell TT not to use my state tax paid on line 5a of Schedule A?
