Do I enter state tax refund if my total property and state taxes were well over the 10K SALT limit

[HMB7]

I am stuck.  TurboTax is requesting I enter state tax refund as income.  However, my total state income tax + property taxes were well over the 10K SALT limit for deductions.  It would be a wash.  Do I simply not report the state tax refund (implied by IRS see link,  With new SALT limit, IRS explains tax treatment of state and local tax refunds | Internal Revenue Se... ).  Or, do I enter it and TurboTax will calculate the overage above the SALT limit and remove/deduct it as income?|
Please advise

[VolvoGirl]

On your 2021 federal return did you itemize deductions or take the Standard Deduction?  Just enter the full state refund and Turbo Tax will calculate how much is taxable if any.

A State Tax Refund is taxable if you itemized deductions on that prior year's federal return and took a deduction for state income taxes instead of the sale tax.  You got a deduction benefit for it so now you have to include it as income. If you took the standard deduction it is not taxable and you don't need to report it.

[HMB7]

Clarification, for State + Property taxes.  The property taxes were over 10K so ALL of the available deduction was used for property taxes.  The state tax refund was moot since none of the state income taxes were deducted due to the 10K SALT limitation.  TurboTax covers home deductions before state income taxes so it was simple enough.  It would be helpful if TurboTax added some examples of how to enter state income tax refunds or NOT for cases in coastal states where 10K SALT limitations are a small fraction of total state and property tax payments.  The IRS had some information on this that indicated it is not necessary to report the state income tax refund if total state income taxes + property taxes sums would be larger than the 10K SALT deduction + state tax refund.  I hope this helps others.  Hopefully, this goes away after 2025 sunset for the 10K SALT limitations!