Thanks for sharing, @rolanddawson2500 ! Glad to see your response and that I was not the only one who thought that there might be an issue here. I thought that there might be a chance that the issue could be related to state conformity of the IRC, which could mean that Oklahoma may not follow yet the new changes in the OBBBA. However, upon further research, this is not the case because 1) Oklahoma has a rolling conformity with the IRC so is technically following the amendments made by the OBBBA, but more importantly, 2) the state statute has not changed, which states that "for tax year 2016 and subsequent years, taxpayers shall add back state and local sales or income taxes which were allowed as an itemized deduction on the federal income tax return" [Oklahoma Admin. Code 710:50-15-50(i)(1)].
As such, since the $10,000 state and local tax cap is not applicable on the 2025 federal return, this cap should not be extended to the Oklahoma state return, and the full state income tax deducted on federal Schedule A should be added back if the deduction is not limited on the federal return. As of today, my software has been updated to the latest version, but this error has not been corrected. Oklahoma tax returns filed through Turbotax before today do face state audit risk since taxable income is understated for those affected by this calculation error. I would like to hear from the Turbotax team to see if we are correct in determining that an outdated programming bug does exist and if the issue is currently being addressed by the development team.
