In Rev. Rul. 2019-11 (PDF), the U.S. Internal Revenue Service (IRS) addressed how the longstanding tax benefit rule interacts with the new $10,000 limit on deductions of state and local taxes to determine the portion of any state or local tax refund that must be included on a taxpayer's federal income tax return. U.S. Internal Revenue Code (IRC) Sec. 164 generally provides an itemized deduction for certain taxes paid or accrued during the tax year. However, Sec. 164(b)(6), as added by the law known as the Tax Cuts and Jobs Act (TCJA), P.L. 115-97, limits an individual's deduction for the aggregate amount of state and local taxes paid during the calendar year to $10,000 ($5,000 in the case of a married individual filing a separate return). Read more at The Tax Adviser.