topic SALT Deduction Incorrectly limits to $10K instead of increased $40K for Federal and NY filing. in Deductions & credits

SALT Deduction Incorrectly limits to $10K instead of increased $40K for Federal and NY filing.

mrsinger — Tue, 17 Feb 2026 23:29:10 GMT

Having an issue where my SALT deduction is incorrectly being limited to the previous cap of $10,000 instead of the increased $40,000 for this 2025 Tax year.

I have input and selected choose the largest, from my W2 it indicates a SALT of $63,591 and should apply the cap of $40,000 , but no matter what I can do I cannot get the $40,000 to be included in my deduction and defaults to the standard $10K or the automatic sales tax calculation.

Any help is appreciated.

Token: 1331066

Re: SALT Deduction Incorrectly limits to $10K instead of increased $40K for Federal and NY filing.

VolvoGirl — Tue, 17 Feb 2026 23:32:53 GMT

What is your AGI? Starting at $500,000 ($250,000 if married filing separately) of modified AGI the SALT deduction phases down and is fully down to $10,000 at $600,000 ($300,000 if married filing separately) of MAGI.

Re: SALT Deduction Incorrectly limits to $10K instead of increased $40K for Federal and NY filing.

mrsinger — Tue, 17 Feb 2026 23:35:06 GMT

AGI is only around $500K so should still well within the $10K phase out range at $600K, even if its slightly below $40,000.

Re: SALT Deduction Incorrectly limits to $10K instead of increased $40K for Federal and NY filing.

DaveF1006 — Thu, 19 Feb 2026 00:13:45 GMT

Check your form 1040 Line 11B, you will find your actual AGI amount is over $600,000. We verified this by looking at your diagnostic return after you sent us the token.