TurboTax shows an AGI of $202,000 on my Tax Summary and then a enhanced deduction for seniors of $5,686. I am filing a joint return with my wife and both of us are over 65. Shouldn't the enhanced be closer to $8,800? What am i missing?
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sorry but i think i answered my own question. i forgot to double the deduction in my calculation which brings it inline with TurboTax.
If you are using the TurboTax desktop editions, click on Forms.
When in Forms mode locate Schedule 1-A on the left side of the screen. Click on the schedule to open.
With Schedule 1-A opened you can see how the deduction was calculated in Part V of the schedule.
For Joint the deductions starts to phase out at 150,000 and maxes out at 250,000. I put AGI 202,000 into my spreadsheet. This is close to yours.
For an additional note, the IRS defines MAGI (modified adjusted gross income) based on the requirements of what the MAGI is for. For purposes of the Enhanced Senior Deduction, MAGI is figured in Part I of Schedule 1-A, and includes add-backs for Puerto Rico income, foreign earned income items from Form 2555, and income from American Samoa on Form 4563 - so that would be the starting point of the credit.
Although I see you have it worked out yourself, just for some reassurance, I ran back of the napkin math using Part V of Schedule 1-A, and 6000-((202-150)*.06) * 2 works out pretty close to the credit you've reported here, so you should be in good shape as far as accuracy goes.
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