Prior to the March 28 update, the program allowed form 8960 line 9b (state, local, and foreign income tax allocated to investment income) to be more than $10,000. The 8960 worksheet was missing a comparison of the proportion of these taxes allocable to investment income, to the maximum allowed deduction of $10,000; the lesser of these is entered in line 9b. The error should only have affected those itemizing deductions and having a calculated proportion of state, local, and foreign income tax to be allocated to investment income more than $10,000. It didn't affect those who took the standard deduction. I e-filed March 22 taking the standard deduction and my return was accepted in 30 minutes.
