The sales tax deduction is an itemized deduction on Schedule A. On Schedule A, you can either deduct sales tax or state tax. As your sales tax is higher than your state tax, TurboTax recommended that you choose sales tax instead of state tax, hence the first message.
However, as the total of your itemized deductions is smaller than your standard deduction, you are better off using the standard deduction. You did not get the benefit of your sales tax deduction but using the standard deduction will give you a larger tax break.
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