TurboTax does indeed operate to limit the legal maximum deductible to the Federal government imposed limit of $10,000. You are indeed presented a screen that tells you this limit on deduction has occurred. However, reading the rest of the screen tells considerably more, and it helps to read all and not just some of what is on the screen.
What is does not tell you is that it is preventing you from having recorded the excess, and to say so is a misreading of the screen. In fact, for other purposes than the SALT limitation, those excess taxes paid are recorded and may be used in some other context.
READ the attachment and ALL of the Text in that first page!
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