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mrsinger
Returning Member

SALT Deduction Incorrectly limits to $10K instead of increased $40K for Federal and NY filing.

Having an issue where my SALT deduction is incorrectly being limited to the previous cap of $10,000 instead of the increased $40,000 for this 2025 Tax year. 

I have input and selected choose the largest, from my W2 it indicates a SALT of $63,591 and should apply the cap of $40,000 , but no matter what I can do I cannot get the $40,000 to be included in my deduction and defaults to the standard $10K or the automatic sales tax calculation. 

Any help is appreciated. 

Token: 1331066

 

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3 Replies

SALT Deduction Incorrectly limits to $10K instead of increased $40K for Federal and NY filing.

What is your AGI?   Starting at $500,000 ($250,000 if married filing separately) of modified AGI the SALT deduction phases down and is fully down to $10,000 at $600,000 ($300,000 if married filing separately) of MAGI.

mrsinger
Returning Member

SALT Deduction Incorrectly limits to $10K instead of increased $40K for Federal and NY filing.

AGI is only around $500K so should still well within the $10K phase out range at $600K, even if its slightly below $40,000. 

DaveF1006
Employee Tax Expert

SALT Deduction Incorrectly limits to $10K instead of increased $40K for Federal and NY filing.

Check your form 1040 Line 11B, you will find your actual AGI amount is over $600,000. We verified this by looking at your diagnostic return after you sent us the token. 

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