ID State Turbo Tax Programming error

[4amity]

Idaho Tax Filing Instructions from the Idaho State Tax Commission page 19 states “You can use either your federal itemized deductions or standard deduction, whichever benefits you more.” Pages 35 and 46 state “If you use the Idaho standard deduction instead of itemizing your deductions for Idaho purposes, you don’t have to reduce your health insurance costs by any amount claimed as a federal itemized deduction."

The issue is that Turbo Tax lacks the ability for the user to select to use the ID standard deduction if their federal itemized deduction amount is higher than the ID standard deduction. Your software needs to be modified to allow users the option to take the ID standard deduction even if it is lower than their federal itemized deduction and write-off their health premiums in full on their Idaho return. It is quite common for the latter to be more beneficial to the taxpayer.

How do I report this issue to the programmers so it can be fixed?

[AnnetteB6]

Your post here is the first step.  However, it would be beneficial to have a diagnostic copy of an actual user's tax return to be able to submit the required details for the change to be considered.  You can help by providing that diagnostic tax file.

The diagnostic file will not contain personally identifiable information, only numbers related to your tax forms.  If you would like to provide us with the diagnostic file, follow the instructions below and post the token number along with which version of TurboTax you are using in a follow-up thread.

Use these steps if you are using TurboTax Online:

• Sign in to your account and be sure you are in your tax return.
• Select Tax Tools in the menu to the left.
• Select Tools.
• Select Share my file with agent.
• A pop-up message will appear, select OK to send the sanitized diagnostic copy to us.
• Post the token number here. 

If you are using a CD/downloaded version of TurboTax, use these steps:

• Select Online at the top of the screen.
• Select Send Tax File to Agent.
• Click OK.
• Post the token number here.

[4amity]

I’m not comfortable doing that. The information I provided originally is sufficient for your programmers to see that the software doesn’t adhere to Idaho law. Heck I even gave them the page numbers to read.

The forms in your Idaho software have a form with a checkbox to use the Idaho standard deduction even if it is lower than federal itemized deductions. But the user can’t mark the box and the software won’t calculate. So somebody at TurboTax knew that’s an option in Idaho, they just didn’t write the code to allow it.

[AnnetteB6]

Based on the information you shared, we have requested a change to the Idaho state tax return program.  The request will have to  be accepted before anything will be done and that could take some time.  

For now, if you need to change your Idaho deduction from standard to itemized and it does not match your Federal deduction choice, then you may need to file your Idaho return by mail.  There is not a viable workaround to allow you do make that change and file both returns electronically.

@4amity 

[4amity]

Since I have to file manually because the software doesn't follow the law, how do I get my $30 back?

[JotikaT2]

Please use this link to request a refund.

[4amity]

Has this issue been corrected in the 2024 ID state turbo tax program?

[DaveF1006]

It depends. To clarify, have you tried it for this year?

@4amity 

[4amity]

No. I"m not going to buy the ID state unless the programming has been corrected.

[4amity]

Why can't I get a definitive answer on this? 

Last year I was told they submitted a requested for change to the Idaho state tax return program.  Was that change request accepted? If so, was it completed for the 2024 product? If the change request was rejected, please explain why Intuit would reject correcting a documented  programming error.

[AnnetteB6 · Accepted solution]

The option to allow Idaho taxpayers to choose whether to use the standard deduction or itemized deductions has been accepted as a change request by the development team.  The work has been done and is scheduled to be included in the update that will be released late this coming week.  

@4amity