Why did Turbo Tax not recognize that I paid more than $10000 in property taxes and then lead me to Schedule 540X so I could claim the excess on my state return?

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Under the new tax law, the state and local tax deductions are limited to $10,000. However, not all states have conformed to this federal limit. California is one of those states. Therefore, your deduction amount will be different than on your federal return.

Please view the California link below for more information.

https://www.ftb.ca.gov/current/Income-tax-reform.shtml