8829/SALT error message

[rlaub]

Try putting it in the second column, for indirect expenses.

[RAinMD]

I see that works, but that's against what the IRS says in the 8829 form instructions. It specifically says for itemizing to use column a which is the first column. And it's possible you could get your tax files rejected.

[rlaub]

It seems to say to use column A of line 17 if you you used column A of line 11.  My line 11 is in column B because it is indirect.

Taxpayers itemizing deductions on Schedule A.

If you used the Line 11 Worksheet to figure the amount to include in column (a) of line 11, then include the amount from line 11 of the Line 11 Worksheet in column (a) of line 17; otherwise, do not enter an amount on line 17.

Basically none of this makes any sense and the fact that we have had to spend so much time figuring this out, is really absurd.

I think I'm just going to reduce the amounts I am claiming on line 11 and call it a day.

[RAinMD]

100% agree with the absurd part!

Like I said, I still have enough time to wait a bit to see if my expert comes back with something. So for the time being I'm going to hang tight and see what she says. 

[rlaub]

Makes sense.  I'm not ready to file yet anyway.

[rlaub]

I went back and utilized the line 11 worksheet in the IRS instructions which results in a number to put on line 17, column A.  I thought this would resolve the issue.  But now the real estate taxes on Schedule A are not being reduced by the amount entered on form 8829.  I went to the tax and interest worksheet where this calculation is handled but there is no entry on the line that says "Less real estate taxes deducted on Form 8829".  The result on this schedule is what flows to Schedule A.  I tried to override and enter a number manually on that line but it creates a new error.

Is there no solution of any of this?

[rlaub]

On another thread someone posted a solution which has worked for me.

On the Tax and Interest Worksheet, on line 2a, I aded supporting detail for the RE taxes.  I listed the total paid and then subtracted the amount from from 8829.  This reduced the RE taxes reported on Schedule A.

[slohtia]

Did you all try using excess real estate taxes in form 8829.  I used the full RE taxes in the first form 8829.  Then in second form 8829 I put in 0 in the RE taxes, but added full amount in Excess RE taxes.  The total deductions turn out to be the same with the excess RE taxes on form 8829.

Then I checked my Schedule A form where I entered the full RE taxes by overriding TT.  Then I compared the Sch A from older file where I was getting error with the new file with Excess RE taxes on one of the form 8829.  The numbers were exactly the same.  I have to take standard deduction so it did not matter as Sch A will not be used.  But for comparison it was exactly the same.

Then I compared CA Schedule CA for itemized deductions for California.  Those numbers were exactly the same in my old file and the updated file. 

So, for me the excess RE taxes works well.  Now TT is also not giving any error.  So I am going to file that way.  Not sure if you have tried and found any difference.  Most likely you will not need to do any manual calculations for Sch A if you use excess RE tax method.

Hope it works for you.

[fredchikin]

I spent a lot of time troubleshooting and was about to pull the trigger on just mailing the tax return since I thought it was an error on Turbotax's part.

BUT, I ended up looking up the instructions for Form 8829 from the IRS website, which led me to the Line 11 Worksheet. After going through it, I realized that for 2025, its instructions are different from before, not in an intuitive way either.

After going through the Worksheet, I ended up omitting placing anything in column (b) Lines 11 and 17 on For 8829. Rather, I made a single entry in column (a) for Line 17. It's not as advantageous as using the same method as prior years (placing total property taxes paid split between Lines 11 and 17 column [b] and essentially multiplying them by the business percentage) as far as tax reduction, but at least I followed IRS's next instructions, which were adjusted to accommodate the increased SALT cap. 

This ultimately cleared up all the errors on Form 8829 I was receiving.

Hope this helps

[slohtia]

@fredchikin   You got it right and thanks for looking into it.  I am claiming standard deduction.  Therefore as per IRS instructions for form 8829, both the real estate taxes and the mortgage interest payments will go in the excess mortgage payment and excess real estate payments.  

I will not correct my entries in form 8829.  The below is from the IRS instructions

"Taxpayers claiming the standard deduction. If you claim the
standard deduction, you will not include any mortgage interest or
real estate taxes on lines 10 and 11; instead, you will claim the
entire business use of the home portion of those expenses using
lines 16 and 17. "

[slohtia]

I just moved the entries to line 16 and 17, and all worked great.  I could still use itemized deductions for CA.

If you are using itemized deductions and not standard deductions on Federal taxes, then you will need to use the instructions to calculate the amount that goes on  line 11 and rest on line 17.  Here is the link

https://www.irs.gov/pub/irs-pdf/i8829.pdf

Thanks.

[grizz2]

I'm having the same issue. I sent file to TT for diagnostics. Hopefully, if enough people bring it to their attention, we can have this bug fixed. 

[grizz2]

Only if you are taking standard deduction. If you are itemizing, it is not excess.

[grizz2]

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