underpayment penalty process

[JST4]

When entering expenses, do I include the deductions for state tax paid and state tax withheld and then when i am over the $10K, does Turbo tax adjust for the overage when it deducts it and comes up with the total for the year?

[RobertB4444]

Your state taxes paid will effect the itemized deductions up to 10K and then be used to figure your deductions in order to get to your taxes due.  Any underpayment penalty is figured using those numbers.  Any additional taxes paid over the $10K threshold on your itemized deductions don't effect your federal return.

@JST4