topic SALT upper limit, when MAGI is between 500k and 600k with form 2555, the computation is not correct for the current software. in Deductions & credits

SALT upper limit, when MAGI is between 500k and 600k with form 2555, the computation is not correct for the current software.

andyzhen — Sun, 01 Mar 2026 14:15:49 GMT

AGI around 533k, 2555 line 45 is 31k. Total SALT allowance should be around 20k, while the software takes the whole SALT being 21k. This is definitely an error and need to be fixed.

Re: SALT upper limit, when MAGI is between 500k and 600k with form 2555, the computation is not correct for the current software.

dmertz — Sun, 01 Mar 2026 17:04:57 GMT

The additional $30,000 of SALT deduction phases out between $500,000 and $600,000. That's $0.30 for each dollar over $500,000. With a MAGI of $564,000, the SALT limit phases down to $20,800.

Re: SALT upper limit, when MAGI is between 500k and 600k with form 2555, the computation is not correct for the current software.

andyzhen — Sun, 01 Mar 2026 22:42:57 GMT

Yes, but the system only use the AGI to compute the SALT upper limit, and set over $22k in the SALT section.
So I think this is a bug in the system.

Re: SALT upper limit, when MAGI is between 500k and 600k with form 2555, the computation is not c...

DaveF1006 — Mon, 02 Mar 2026 18:05:06 GMT

We would like to take a look at this just to verify if the program is indeed using AGI and not MAGI to compute the upper limit. To investigate, I need a diagnostic file which is a copy of your tax return that has all of your personal information removed. All we see are numbers in your return.

TurboTax Online:

Sign into your online account.
Locate the Tax Tools on the left-hand side of the screen.
A drop-down will appear. Select Tools
On the pop-up screen, click on “Share my file with agent.”
This will generate a message that a diagnostic file gets sanitized and transmitted to us.
Please provide the Token Number that was generated in the response.

TurboTax Desktop/Download Versions:

Open your return.
Click the Online tab in the black bar across the top of TurboTax and select “Send Tax File to Agent” *
This will generate a message that a diagnostic copy will be created. Click on OK and the tax file will be sanitized and transmitted to us.
Please provide the Token Number (including the dash) that was generated in the response.

Re: SALT upper limit, when MAGI is between 500k and 600k with form 2555, the computation is not c...

andyzhen — Mon, 02 Mar 2026 18:51:40 GMT

Token ID: 1336119

Re: SALT upper limit, when MAGI is between 500k and 600k with form 2555, the computation is not c...

andyzhen — Sat, 07 Mar 2026 04:22:11 GMT

Do we have updates on this investagtion?

Re: SALT upper limit, when MAGI is between 500k and 600k with form 2555, the computation is not c...

dmertz — Sat, 21 Mar 2026 20:39:55 GMT

[I've changed my post. It seems that you have foreign-earned income that adds to AGI and should reduce the SALT limit. I thought that your concern is that your SALT deduction was lower than it should be, not higher than it should be.]

To limit your SALT deduction to $20,000, your MAGI would have to be $566,667, but you've mentioned the your MAGI is only $564,000. A limit of $21,000 for the SALT deduction would mean an MAGI of $563,333.

Re: SALT upper limit, when MAGI is between 500k and 600k with form 2555, the computation is not c...

andyzhen — Wed, 25 Mar 2026 04:01:12 GMT

1344782. Can you verify that?

Re: SALT upper limit, when MAGI is between 500k and 600k with form 2555, the computation is not c...

DawnC — Thu, 26 Mar 2026 05:43:31 GMT

Are there any state returns included with your token files, @andyzhen?

Re: SALT upper limit, when MAGI is between 500k and 600k with form 2555, the computation is not c...

andyzhen — Thu, 26 Mar 2026 05:46:05 GMT

No, there is no State return. I’m in WA

Re: SALT upper limit, when MAGI is between 500k and 600k with form 2555, the computation is not c...

DawnC — Thu, 26 Mar 2026 23:46:38 GMT

Thank you for that information, @andyzhen. I've confirmed the issue and it is in the process of being corrected now. I don't have an ETA, but it should be quick!

Re: SALT upper limit, when MAGI is between 500k and 600k with form 2555, the computation is not c...

andyzhen — Fri, 03 Apr 2026 01:28:49 GMT

Do we have latest updates?

Re: SALT upper limit, when MAGI is between 500k and 600k with form 2555, the computation is not c...

andyzhen — Mon, 06 Apr 2026 16:50:11 GMT

Do we have updates?

I still see the wrong MAGI and SALT deduction in my account.

Re: SALT upper limit, when MAGI is between 500k and 600k with form 2555, the computation is not c...

andyzhen — Thu, 09 Apr 2026 03:06:11 GMT

@DawnC I still have not seen the corrected tax return amount.

Re: SALT upper limit, when MAGI is between 500k and 600k with form 2555, the computation is not c...

DawnC — Thu, 09 Apr 2026 03:25:08 GMT

Check back this weekend @andyzhen . It will be a part of the next update, which happens at least every Friday night.

Re: SALT upper limit, when MAGI is between 500k and 600k with form 2555, the computation is not c...

andyzhen — Mon, 13 Apr 2026 17:47:58 GMT

@DawnC Nop, the SALT is still wrong. Should I just file extension at this stage?