CORRECTION. The federal government was going to raise the percentage floor on medical deductions to 10%, but it delayed that change for 2019. It remains 7.5%. After a long discussion with a TurboTax consultant, we believe the adjustment is being made because the state of GA is using 10% as the percentage floor on medical deductions. I could not verify (after hours of searching and calling) that the GA rate is 10%, but because the amount added back was exactly 2.5% of my adjusted gross income, we assume this is the reason.
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Actually, it appears to me that TurboTax Federal is using last year's percentage of 7.5% instead of the new 10% to calculate the allowable deduction for medical expenses. In the TurboTax Georgia State, it is using the new 10% and is deducting the additional 2.5% from my income as a FEDERAL TAX INCOME ADJUSTMENT.
The $2028 amount added is exactly 2.5% of my income.
I have a call into support (my third) to discuss this with them. In the instructions on Schedule A 2019, it shows "Multiply line 2 by 7.5% (0.075)".
