How does Turbotax handle IR-2019-109...IRS Final regulations on charitable contributions and state and local tax credits? It came out on Jul 11, 2019, and "requires taxpayers to reduce their charitable contribution deductions by the amount of any state or local tax credits they receive or expect to receive in return. ...the IRS stated that taxpayers may treat payments they make in exchange for these credits as state or local tax payments. This allows some taxpayers to deduct certain of the payments as taxes." They will be counted as taxes but are limited by the SALT limit of $10000. How does TurboTax handle this?
TurboTax doesn't handle it. You handle it. If you received state or local tax credits in exchange for charitable contributions, do not enter those contributions as charitable contributions in TurboTax. Enter the contributions as state or local tax that you paid.
Adding some details on entering these as state tax payments instead of charitable contributions...
From https://www.irs.gov/newsroom/final-regulations-on-charitable-contributions-and-state-and-local-tax-c...: "The IRS also posted a notice (Notice 2019-12 (PDF)) providing a safe harbor that allows an individual who itemizes deductions to treat, in certain circumstances, payments that are or will be disallowed as charitable contribution deductions under the final regulations as state or local taxes for federal income tax purposes."