Senior Deduction phase out on form 1-A.

[terriheid]

MFJ and both over 65 with income of $180k and subject to the phase out.  However Turbo Tax desk top version is incorrectly calculating the phase out amount by doubling the phase out amount.  I've seen where others have reported the issue but I don't see confirmation by Intuit that it's a known issue or any estimate of when to expect correction.

[rjs]

The calculation in TurboTax is correct. The phaseout applies separately to each spouse on a joint return. Look at Part V of Schedule 1-A. TurboTax is following the IRS instructions for Schedule 1-A.

[VolvoGirl]

It is phased out for EACH spouse.  Fill out Sch 1-A yourself and see.  It's pretty easy.  Then why would they even have 2 lines 36a and 36b for spouse on Schedule 1-A?  And the max for Joint is 250,000 and not double for Single (350,000).

IRS Schedule 1-A
https://www.irs.gov/pub/irs-pdf/f1040s1a.pdf

See IRS instructions for 1040 line 110
https://www.irs.gov/pub/irs-pdf/i1040gi.pdf

[VolvoGirl]

@terriheid   I entered 180,000 into my spreadsheet for you.  Is t his what you got?  

[terriheid]

Appreciate replies but still not understanding.   Calc is based off joint gross income and the 150k max is based off joint income and the 6% calc is based on total joint but then that result is applied on each taxpayer which seems to double penalize, what am I missing? 

[rjs]

The only thing you're missing is that it's not a penalty. That's the way the law requires the calculation to be done. The phaseout applies separately to each spouse. Just look at Schedule 1-A and follow the steps in Part V.