Will TurboTax calculate the MFJ senior deduction correctly? How the the "per-person" bonus is handled for joint filers can be confusing and lead to incorrect amounts.

[rmsaliba]

the correct bonus senior deduction for a Married Filing Jointly (MFJ) couple with an Adjusted Gross Income (AGI) of $223,479 is $3,182.52. This amount is derived from calculating the phase-out for each spouse individually and then combining the results. Your bug report was correct in identifying that applying the phase-out to the couple's total potential bonus of $12,000 is an incorrect methodology. The correct calculation broken down Determine individual bonus amount: Each qualifying spouse is eligible for a bonus deduction of up to $6,000. Calculate excess income: The phase-out is based on the couple's combined Modified Adjusted Gross Income (MAGI), which in this case is the AGI of $223,479. The threshold for MFJ is $150,000. Excess Income = $223,479 - $150,000 = $73,479 Apply phase-out to each bonus: The 6% phase-out is applied to the excess income, and this reduction is applied to each individual's potential $6,000 bonus. Reduction = $73,479 × 0.06 = $4,408.74 Calculate remaining bonus per spouse: Bonus Per Person = $6,000 - $4,408.74 = $1,591.26 Calculate total bonus for the couple: Since both spouses are over 65, the individual bonuses are combined. Total Bonus = $1,591.26 + $1,591.26 = $3,182.52. NOT LIKE THIS... Breakdown of the calculation Maximum Potential Bonus: Since both spouses are over 65, the couple's maximum potential bonus is $12,000 ($6,000 per person). Phaseout Threshold: The phaseout begins when the couple's Modified Adjusted Gross Income (MAGI) exceeds $150,000. It is fully phased out at $250,000. The AGI of $223,479 is used here as a substitute for MAGI. Income Exceeding Threshold: The amount of income over the threshold is calculated as follows: $223,479 (AGI) - $150,000 (threshold) = $73,479 Total Reduction: The deduction is reduced by 6 cents for every dollar over the threshold: $73,479 × 0.06 = $4,408.74 Final Bonus Deduction: The reduction is subtracted from the couple's maximum potential bonus: $12,000 - $4,408.74 = $7,591.26.

[rjs]

I don't know what "bug report" you are referring to. TurboTax for 2025 has not been released yet, so there cannot have been any bug reports about it. When TurboTax for 2025 becomes available I'm sure it will calculate the deduction for seniors correctly. The calculation will be done in Part V of the new Schedule 1-A, which lays out the calculation very clearly, step by step. TurboTax will fill out Schedule 1-A as specified by the IRS.

[Opus 17]

Turbotax will implement the official IRS forms, instructions and worksheets.

However, be aware that when Turbotax is first available in November, it will almost definitely include at least some 2024 calculations that will not be updated in time for the first release.  Turbotax will release updates throughout the tax season, and will not allow you to file if one of the forms or calculations you need to use has not been updated.  For most taxpayers, Turbotax will be ready to file by about January 15.