OK, I finally managed to get TurboTax to respond to me (sharing my file here did nothing, I was ignored until I engaged with enough phone support agents (over 6 hours of phone time) to get to a super...
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OK, I finally managed to get TurboTax to respond to me (sharing my file here did nothing, I was ignored until I engaged with enough phone support agents (over 6 hours of phone time) to get to a supervisor who actually looked at my file, and ultimately did email me a reply.) Technically, the reply was NOT responsive. TurboTax is unable to explain why an error message is generated when multiple Form 8829’s are filed, and the total of all entries on line 11 column (b) equals or exceeds 40,000. However, they did direct me to a couple of things worth paying attention to: They sent me to their Unsupported Calculations page (I’ll call it “USCP”): https://digitalasset.intuit.com/render/content/dam/intuit/cgcs/en_us/turbotax/pdfs/[phone number removed]-unsuppo[product key removed]TTgn.pdf Page 10 line 7 of TurboTax's USCP refers to the Line 11 Worksheet in the IRS instructions for Form 8829. TurboTax doesn’t support entries on line 11 of Form 8829, if this worksheet is required. I was surprised to discover that for this year, most 8829 fliers will likely fall into this category for 2025. I suggest you read Form 8829 instructions for line 11. If, because of the increased Standard Deductions (“SD”) this year (and seniors should pay close attention here) you find that your total Itemized Deductions don’t exceed the SD, you are instructed NOT to put anything on line 11 at all. Instead, you are guided to line 17 “Excess Real Estate Taxes”, col (b). (As a reminder, the SD does NOT include the extra $6,000 deduction for Seniors. That’s added afterwards.) I will note here that according to its USCP, TurboTax does not support entries on line 17 of Form 8829 due to the SD being used (page 10, line 5 and 6) If you ARE Itemizing, the ONLY time you DON’T need to complete the Line 11 Worksheet is if the total of all your SALT (State and Local Tax) deductions on Sch A (this would include state and local income/sales tax plus real estate (RE) tax plus personal property tax – basically the amount on line 5d of Sch A) IFF this total is LESS than $10,000, ONLY THEN are you allowed to make an entry on line 11, col (b) without first completing the Line 11 Worksheet. (And yes, the cap here is $10,000, not the $40,000 cap on RE tax for Sch A this year (Note: The IRS doesn’t seem to be concerned that this is basically an iterative calculation because technically, you need to know the amount of your 8829 RE tax deduction FIRST in order to enter the correct amount of real estate taxes on Sch A). This will impact a lot of people, so be aware. And finally: Basically, as far as I can tell, if you have to complete the Line 11 Worksheet, you will ultimately be instructed to make your RE tax entry on Form 8829 line 11, col (a) (Direct Expenses) and NOT col (b) (Indirect Expenses). Because of this, most people completing Form 8829 are not supposed to be making an entry on line 11, col (b) at all. Also, just as a reminder, if you also have a home rental and are filing Sch E, TurboTax doesn’t carve out the amount of RE taxes deducted on Sch E before entering the amount on Form 8829, line 11, col A. You have to do that yourself. So if you have, say, $10,000 in RE taxes and $4,000 of these were allowed as a deduction on Sch E, the amount of RE taxes to enter on line 11 of each Form 8829 is $6,000 (not $10,000). The balance after Form 8829 deductions will go Sch A. (This matches the IRS ordering of RE tax deductions) Hopefully this is helpful.