topic TurboTax has an error. On the fed Schedule A it says that the deductible for medical expenses is 10% which agrees with the IRS website but it multiplies income by 0.075. in Deductions & credits

TurboTax has an error. On the fed Schedule A it says that the deductible for medical expenses is 10% which agrees with the IRS website but it multiplies income by 0.075.

kilkenp — Mon, 03 Jun 2019 18:48:00 GMT

Consequently my medical deduction is $3100 too high

That's all up in the air until the tax bill passes. Turb...

mesquitebean — Mon, 03 Jun 2019 18:48:01 GMT

That's all up in the air until the tax bill passes. TurboTax will likely revise the Schedule A form soon, once the bill is passed, to make it sync with the proper calculation. For the medical expense deduction, I believe the new tax bill specifies 7.5% of AGI as the threshold for everyone who itemizes for 2017 and 2018, then returns to 10% of AGI after 2018. See this article:

<a rel="nofollow" target="_blank" href="https://www.cnbc.com/2017/12/16/gop-tax-bill-expands-medical-expense-deduction-for-two-years.html">https://www.cnbc.com/2017/12/16/gop-tax-bill-expands-medical-expense-deduction-for-two-years.html</a>

The IRS has not finalized the 2017 1040 Schedule A yet -...

macuser_22 — Mon, 03 Jun 2019 18:48:05 GMT

The IRS has not finalized the 2017 1040 Schedule A yet - they still show the 2016 version as the latest version. The tax bill that was voted on today by the House will extend the 7.5% for 2 more years if signed into law. TurboTax cannot be updated until the IRS releases the 2017 e-file specifications for Schedule A.

Actually, the deduction is likely to be 10% for 2017 and...

Opus 17 — Mon, 03 Jun 2019 18:48:07 GMT

Actually, the deduction is likely to be 10% for 2017 and then go back to 7.5% for 2018. I don't believe any of the changes are retroactive.

In any case, there are many parts of Turbotax that are not yet ready to file. The printed forms will say "do not file" and the electronic system is not turned on yet. Each form has to be programmed, tested and then approved by the IRS. As noted, the IRS itself has not yet published the official 2017 forms. All the forms will be finalized to match 2017 tax laws by the time filing is turned on.

The 7.5% is for tax years 2017 and 2018. https://www.investopedia.com/news/trumps-tax-reform-what-can-be-done/">https://www.investopedia.com/news/trumps-tax-reform-what-can-be-done/</a>

https://www.usatoday.com/story/news/politics/2017/12/18/how-soon-after-president-trump-signs-tax-bill-you-see-effects/961497001/">https://www.usatoday.com/story/news/politics/2017/12/18/how-soon-after-president-trump-signs-tax-bill-you-see-effects/961497001/</a>