Issue with mortgage interest deduction

[Steveod]

I am getting a "maxed Out" message on my home property tax deduction and indicates I have hit the 10K limit but my mortgage prop tax is only 6895.09.   I have not added any deductions for property taxes prior.   What am I getting this message?  The help pull downs in the product do not explain this  and dont help  to show me WHY this is being rejected as a max state/local deduction.  Anyone else seeing this problem?  Is this a known problem?  Please advise at your earliest

[RaifH]

The $10,000 tax limit applies to all state and local taxes withheld in 2021. In addition to the property tax that you entered, it would include any state and local taxes withheld on your 2021 W-2s and any state tax you had due in 2020 that you paid during 2021. It would also include sales tax if that is greater than your income tax and personal property taxes on vehicles.

[Steveod]

Sorry but I dont understand.  So If Im am reading this right, If I had state taxes withheld from retirement payouts(1099-R) or any 1099 , I cant deduct the property tax on my house?  Its substantial. I increased my  withholding to keep from having to pay a penalty for underpayment of taxes.  This make no sense.  I did not have this issue last year.  This is my first deduction input to the software so Im not sure where it is getting the 10K limit for deduction exceeded of  mortgage property tax.  So last year I was able to deduct property tax, car fees and Personal property tax(cars). This year I cannot?

[Carl]

If you are filing Married Filing Separate, then your SALT limit is cut in half.

[Steveod]

Not filing seperately

[Steveod]

Anyone else out there seeing this limit?  It make no sense to me that the federal return  cares about state withholding and uses that against you so you can not deduct  mortgage property taxes... anyone?