State income taxes

[john-mcneely]

My state income taxes for 2018, net of the refund I received in 2019, exceeded the $10,000 limit for Schedule A.  Why is Turbo Tax insisting that the refund is taxable in 2019?  In rough numbers, I paid $15,000 state income taxes in 2018, received a $1,200 refund in 2019.  So I paid net state income taxes of $13,800, but only got a $10,000 deduction.  

I contend that I got no federal tax benefit in 2018 for paying the $1,200 I got back in 2019.

[DoninGA]

Have you received the TurboTax software for tax year 2019?  Any taxable state/local refund received in 2019 will be entered on the 2019 tax return to be filed in 2020.

[Critter]

Since the 2018 tax law changes on the Sch A limitations  effects how the 2019 program will handle the taxable state refund I can be certain the beta version of the 2019 program will NOT have this wrinkle worked out yet ... most likely not  until sometime in January ... so if you did just get the 2019 downloaded program be aware that it is NOT a fully functional program and will not be until late January at best.