The desktop Turbo Tax is not computing the enhanced senior deduction correctly for married filing jointly. It should calculate the MAGI over $150,000 and subtract 6% of that amount from $12,000. However, the current logic is subtracting that 6% over the $150,000 from each eligible senior, or effectively doubling the amount of the reduction.
Example: Assume total MAGI of $214,000. The reduction would be $214,000 - $150,000 =$64,000.00 x .06 =$3,840.00 reduction. That would reduce the joint enhanced deduction to $12,000 - $3,840 = $8,160. However, the Turbo Tax tool is subtracting $3,840 from each eligible’s $6,000, leaving an enhanced senior deduction per eligible of $2,160 for a total joint enhanced deduction of only $4,320. A $3,840 understatement of the allowed deduction. I’m trying to connect with Turbo Tax to see if they are working on fixing this.
