I really don’t think it’s my computer. Was your state tax deduction over the $10,000 federal limit? Did you also have Property tax included on Schedule A as part of that total? If so, did you look at what Help Center in Turbo Tax says it does to apportion the state tax amount on Line 14? If so, did you get that number? I don’t. It does a different calculation (simple subtraction).
According to the software help guide, it’s supposed to apportion the amount by the same percentage as the state income tax is in the total, non-limited amount. Not just simply match the Line 5a number. If you’re interested enough, try this in the software and let me know what you get:
St Income Tax (5a): $15,000
Real estate Tax: $3000
Total will show $18,000, before the $10K limit
According to the description in Help Center, I think the apportioned amount that shows up on TC-40 Line 14 should be: $8333
(i.e., $15,000 is 83.33% of $18,000, so the apportioned amount of the deduction due to St income tax is $8333)
However, if it gives you $7000 on TC-40, it’s behaving the same way as on my computer (i.e., $10,000 - $3000 = $7,000).
I can see a rationale for either method, the SW does not seem to behave as described. Also, on what bases is either the apportioned number or the simple subtraction based in either a Federal or State instruction?
