@roylewis
"But it doesn't indicate which of the three entries was used for that $10K amount. . . . 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."
The $10,000 maximum applies to the total state and local taxes, not to any particular tax. The tax law does not designate a particular type of state or local tax that is "used for" the $10,000 deduction.
"The state tax was still used in the calculation thus you should get a 1099-G for the state tax refund."
"Thus, if i don't include it, I shouldn't get a 1099-G next year for the state tax refund."
The state sends you a 1099-G if you got a state income tax refund, whether or not you claim a deduction for state income tax. What's on your federal tax return does not affect whether the state issues a 1099-G. Getting a 1099-G does not make your refund taxable. How much, if any, of the refund is taxable is calculated when you file your tax return.
"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."
I'm not sure what worksheet you're looking at. The calculation of how much of your state refund is taxable is done on the State and Local Income Tax Refund Worksheet. It does take the $10,000 limit into account. Essentially it calculates whether you got any tax benefit from deducting the amount that was later refunded. It figures out how much your deduction would have been if the amount of the refund was subtracted from the amount of state income tax that you entered. If you would still have been above the $10,000 maximum, none of your state refund will be taxable.
