Schedule A Line 5e 2025

[Al2531]

2025 Premier Schedule A Line 5e does not return a $10,000 value; when Line 5d is greater than$10000. It returns the larger than $10,000 value. the logic limitation statement does not appear to be working according to the forms text. What is the correct answer?

[rjs · Accepted solution]

The new tax law increased the limit for state and local taxes to $40,000. The text on the form may not have been updated yet. It should say "Enter the smaller of line 5d or $40,000 ($20,000 if married filing separately)." The IRS has not yet published the final Schedule A form for 2025.

[DC93]

How does this affect the State of Maine Schedule 2, line 2a?  The form still asks to enter the amount from 1040 Schedule A, line 5e (now greater than 10,000) however Turbo Tax auto-populates 10,000 in that field.  Is this accurate?  Although this benefits me, will my state taxes be rejected for having a different value between the Federal Schedule A line 5e and State of Maine Schedule 2 line 2a?

[LeticiaF1]

I reviewed a scenario in TurboTax with the maximum amount of state and local taxes, to see how it would affect Maine's Schedule 2.  Even if you get the whole amount that is allowable for taxes paid in Maine Schedule 2, the form limits your allowable itemized deduction on line 5 to $36,300.  Claiming the maximum amount of state taxes paid on your federal, would not make your return reject.  

@DC93 

[DC93]

I don't believe you answered my question.  My State of Maine Schedule 2, line 2a states to enter the amount from 1040 Schedule A, line 5e which for me is $15,500.  Turbo Tax however auto-populates $10,000 in the Maine Schedule 2 line 2a, not the $15,500 from Schedule A, line 5e.  The $10,000 cannot be changed or overridden, and calculations are not shown in the TT forms. Will my state taxes be rejected for having a different value between the Federal Schedule A line 5e and State of Maine Schedule 2 line 2a? Thank you.

[Vanessa A]

I would like to take a deeper look at this. However, I need a diagnostic file which is a copy of your tax return that has all of your personal information removed. You can send one to us by following the directions below:

TurboTax Online:

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

TurboTax Desktop/Download Versions:

1. Open your return.
2. Click the Online tab in the black bar across the top of TurboTax and select “Send Tax File to Agent” *
3. 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.
4. Please provide the Token Number  (including the dash) that was generated in the response.

*(If using a MAC, go to the menu at the top of the screen, select Help, then, “Send Tax File to Agent”)

[DC93]

Thank you for reviewing.  The token number is 564261280-06166163.

[socyrdo]

I am having the same issue.  Any fix to this?

[DawnC]

The automatic filter removed the token number.    Can you type out the number but add dots between the number - or post a screenshot?  Thanks @DC93 

[socyrdo]

I am having the same issue at DC93.  My token number is 1332173.  Can you help @DawnC ?

[DC93]

Hello @DawnC.  I am able to see my entire 17 digit token number in this message string, but posted a screenshot of the number per your request.  Can you please review and provide a response soonest?  I was in the process of final review of taxes to hit submit when I discovered the discrepancy between the Federal Schedule A line 5e and State of Maine Schedule 2 line 2a in TT, and initiated the original message over 3 weeks ago.  Each response from TT experts one week later has either not answered my question or a request for more info.  I apologize for my frustration, and I do appreciate the help.

[DC93]

@DawnC - See posted token number.

[RogerD1]

@DC93 @socyrdo Most states, including Maine, have not yet conformed to provisions of the One Big Beautiful Bill.  Maine has adopted some parts of the OBBB related to business expenses and disaster losses.  Because of the non-conformity, most states are using the tax code in place in 2024, which includes the $10,000 cap on the Federal State and Local Tax Deduction.  Because of that, the limit that you are seeing in TurboTax of $10,000 for State and Local Taxes would be correct.

The state of Maine is considering possible legislation to adopt additional parts of the OBBB, however, the increased State and Local Tax deduction was not specifically mentioned.  If Maine should decide to change their tax code and adopt the OBBB increase of the State and Local Deduction of $40,000 for 2025, you can always amend your tax return to make that change.  But as of now, the amount you are seeing is correct.

The following comes from Maine Tax Alert, Vol. 35, Issue 14 from October 2025 - #2: "Major items that the 2025 Maine tax forms and instructions will reflect conformity with are qualified disaster losses, qualified farm property, Code Section 179 expensing, the business interest deduction, and certain research and experimental expenses noted below.

Major items that the 2025 Maine tax forms and instructions will reflect nonconformity with are the increased federal standard deduction, accelerated depreciation for qualified production property, and the accelerated expensing of research and experimental expenditures incurred after 2021."