topic Re: SALT deduction error in Get your taxes done using TurboTax

SALT deduction error

gotty10 — Fri, 30 Jan 2026 00:40:19 GMT

I just completed my 2025 federal and Idaho state returns through TurboTax. Due to the $10,000 SALT deduction limitation in prior years, there is a calculation in the Idaho return that would add back only the portion of my state withholding that met this threshold. So, in 2024, I paid $3,900 in property taxes, and $7,140 in Idaho withholding ($11,040 total), and my 'addback' for Idaho itemized deductions pertaining to state and local taxes on line 34 of the Idaho return reflected only $6,100, as the additional $1,040 in Idaho withholding was not actually deducted on my Federal return, as that portion exceeded the $10,000 SALT limitation.

Now, for 2025, I had $4,150 in property tax and $7,525 in Idaho withholding ($11,675 total). The law has changed, and now the SALT limitation for 2025 is at $40,000, so the entire amount is deductible for Federal purposes. However, my Idaho return line 34 shows the 'addback' of $5,850, instead of the entire $7,525 that I recognized on my Federal return. I believe the entire $7,525 should have been added back when figuring my 2025 Idaho Itemized Deductions, since it was all deductible on my Federal for this year.

Re: SALT deduction error

LittleBirdie — Fri, 30 Jan 2026 22:30:27 GMT

Just chiming in to say my SALT deduction is inaccurate as well. It populates zero for my property taxes when it's comparing it to sales tax. Ugh!

Re: SALT deduction error

RobertB4444 — Tue, 03 Feb 2026 00:48:12 GMT

Idaho has not passed the laws that would put it in alignment with the federal laws yet. They are still considering the bill that was proposed on January 29th.

You can wait to file your Idaho tax return to see what decision the state legislature makes or you can file your return now with the $10,000 cap still in place and then amend your return later if the legislation passes.

@gotty10

@LittleBirdie

Re: SALT deduction error

haleyrsd — Wed, 04 Feb 2026 00:49:43 GMT

The answer from the employee tax expert is incorrect. If you look at the instructions for the forms provided by the Idaho State Tax Commission at https://tax.idaho.gov/wp-content/uploads/forms/EFO00089/EFO00089_10-02-2025.pdf , the formula for Idaho Form 43/Line 34 and the formula for Idaho Form 40/Line 14 both take into account the updated SALT limits. Specifically, if the filer is married and Line 5d of Federal Schedule A is great than $10,000, the Idaho form instructions give the following formula (using data from Federal Schedule A):

Line 5e - Line 5c - Line 5b

Instead TurboTax is clearly using the formula:

$10,000 - Line 5c - Line 5b

I called TurboTax yesterday and am awaiting an answer with the results of their research.

Re: SALT deduction error

SusanY1 — Wed, 04 Feb 2026 00:58:43 GMT

Idaho legislation on conforming tax law is still pending as of today, February 3, 2026.

If it is passed, with retroactive provisions, updates will be incorporated as quickly as possible.

Re: SALT deduction error

haleyrsd — Wed, 04 Feb 2026 01:10:54 GMT

I understand the Idaho State Legislature is discussing possible legislation to incorporate all the facets of the One Big Beautiful Bill Act; however if one follows the current instructions provided by the Idaho State Tax Commission for the 2025 forms in order to determine how much of the SALT deductions from Federal Schedule A need to be added back in as income for Idaho tax purposes, the result is different from what TurboTax is calculating for that add-in. This is why the TurboTax result is incorrect, regardless of pending legislation.

Re: SALT deduction error

gotty10 — Wed, 04 Feb 2026 17:31:20 GMT

This is copied directly from the Idaho State Form 43 instructions for 2025:

Itemized Deductions

If you use federal Schedule A to itemize, use the following instructions for line 34:

• If federal Schedule A, line 5d, is:

$10,000 or less ($5,000 if married filing separately), enter the amount from federal Schedule A, line 5a.

More than $10,000 ($5,000 if married filing separately), subtract lines 5b and 5c from line 5e, and enter the amount here. Enter zero for any result less than zero.

In 2024, line 5e on Schedule A of the Federal return instructed the filer to use the smaller of $10,000 or amount on 5d. For 2025, line 5e on Schedule A instructs the filer to use the smaller of $40,000 or the amount on line d. This is what the TurboTax experts are missing. There is no need to wait for pending legislation. Using the instructions, that are clearly stated in the Form 43 instructions, my figure should have been $7,525. not the $5,850 that was populated when I filed the return. Turbo Tax is WRONG. Can somebody from Turbo Tax PLEASE actually go to the instructions on the Idaho State Tax commission website and read the instructions with respect to line 34, instead of continuing to give us incorrect answers?

Re: SALT deduction error

haleyrsd — Wed, 04 Feb 2026 18:56:01 GMT

Agreed. Also, TurboTax please note the instructions posted above for Form 43, Line 24 are also the same as Form 40, Line 14. The formula for both Idaho forms need to be corrected.

Re: SALT deduction error

SusanY1 — Wed, 04 Feb 2026 20:45:36 GMT

To help us evaluate this issue more clearly, it would be helpful if we could have a diagnostic copy of a return with this issue.

To send us a diagnostic copy (which is a copy of the data and entries stripped of personally identifying information, please follow these steps:

From any page in the TurboTax online software (except Tax Home):

Click on Tax Tools in the menu on the left hand side of the screen
Next, click on Tools
In the pop up box click on Share file with an agen”
Return to this thread and post the token code that appears on the screen so that we can link that file with this question

If you are using TurboTax desktop, the send file to agent command is under the Online menu.

Re: SALT deduction error

gotty10 — Wed, 04 Feb 2026 22:14:57 GMT

Thank you for responding. Unfortunately, because I have already filed my Federal and Idaho State returns, the only available options when I go into TurboTax are the 'Tax Home' Screen and 'Documents' Screen. Neither one of these windows shows the 'Tax Tools' option, so I am unable to provide that to you. Is there a way for you to grant me permission to gain access to get to my input screens?

Re: SALT deduction error

DawnC — Wed, 04 Feb 2026 22:28:05 GMT

Yes, when you land on the Tax Home page, scroll down and click on 2025, and then Add a State - that will open up your return and allow you to see the Tax Tools options so you can send the file securely.

How to access your return post filing

Re: SALT deduction error

haleyrsd — Wed, 04 Feb 2026 23:34:21 GMT

Thank you for your response. I spoke with Ron in TurboTax Tech Support on the phone on Monday night and he had me generate the information you are requesting. The token is 1325140. He was supposed to call me last night after talking with his management, but I have not heard from him yet. I would appreciate any help from TurboTax to have this issue corrected ASAP, for my benefit as well as others from Idaho who may not catch the error.

Re: SALT deduction error

gotty10 — Thu, 05 Feb 2026 18:33:24 GMT

token number is 1326211

thank you!

Re: SALT deduction error

haleyrsd — Wed, 11 Feb 2026 23:50:28 GMT

TurboTax, do you have an update on this reported issue? I provided my information a week ago, and another customer provided information nearly a week ago. This should be an easy fix. Is there an ETA?

Re: SALT deduction error

rolanddawson2500 — Mon, 16 Feb 2026 18:14:57 GMT

For what it is worth (not much) Turbo Tax is having the same issue with Oklahoma Returns, it keeps prorating from the 2024 SALT limit of $10,000 on SIT, instead of the 2025 SALT limit of $40,000. This results in a under reporting of state income and also SIT taxes. Ready to file, but not sure what to do, if I overide and put in the correct numbers, I risk rejection on eltronic filing.

Re: SALT deduction error

gotty10 — Mon, 16 Feb 2026 19:08:52 GMT

So, I actually had filed both my Federal and Idaho State return, and the Idaho return was filed with the error mentioned in this string. This past Friday, February 13th, I received my refund from the State of Idaho- they processed the return without realizing the issue (probably because they actually trusted that TurboTax would provide a correct and accurate return). As a result, I got about $90 more than I should have, but I'm ok with that...

Re: SALT deduction error

haleyrsd — Tue, 17 Feb 2026 20:51:44 GMT

Thanks for responding on this post, rolanddawson2500. I should have copied the Oklahoma stream here when I commented on the Oklahoma post yesterday.

@DawnC and @SusanY1, TurboTax has confirmed there is an issue with SALT calculations for Oklahoma filers, but I have not yet seen any updates regarding the SALT calculation errors reported by Idaho filers two weeks ago.

Has TurboTax recognized this error for Idaho returns? Is it being corrected and is there an ETA for completion? In the meantime, is there a way for me to file my federal return now and my Idaho return later?

Re: SALT deduction error

MelindaS1 — Wed, 18 Feb 2026 01:09:03 GMT

We're aware of the issue and I'm following up on that now @haleyrsd In the meantime, yes, you can file Federal first and then wait to file the Idaho return after the Federal is accepted. I understand this isn't ideal.

In TurboTax Desktop, navigate to Step-by-Step > File > File a Return; from there, the prompts will allow you to choose which return(s) to file. The option is available in TurboTax Online as well.

More info from FAQ - How do I e-file my state after I already filed my federal?:

Although you can e-file your federal and state taxes together, if you choose to e-file your federal first, you'll have to wait until that return has been accepted before you can e-file your state.

If your federal hasn't been accepted, or you printed and mailed it, you won't be able to e-file your state but you can print and mail a paper return.

Married filers: If you e-filed your federal using the joint married status, but you want to e-file your state returns separately, only one of you will be able to e-file. The other must paper-file their state return.

Re: SALT deduction error

user17723054585 — Sat, 28 Feb 2026 19:29:40 GMT

Any update on this? This error is still showing up as of today.

Re: SALT deduction error

haleyrsd — Sat, 28 Feb 2026 19:34:31 GMT

@MelindaS1 are there any updates on the SALT calculation error for Idaho taxpayers? It’s been two weeks since your last reply when you were checking into the status.