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andyzhen
New Member

SALT upper limit, when MAGI is between 500k and 600k with form 2555, the computation is not correct for the current software.

AGI around 533k, 2555 line 45 is 31k. Total SALT allowance should be around 20k, while the software takes the whole SALT being 21k. This is definitely an error and need to be fixed.
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4 Replies
dmertz
Level 15

SALT upper limit, when MAGI is between 500k and 600k with form 2555, the computation is not correct for the current software.

The additional $30,000 of SALT deduction phases out between $500,000 and $600,000.  That's $0.30 for each dollar over $500,000.  With a MAGI of $564,000, the SALT limit phases down to $20,800.

andyzhen
New Member

SALT upper limit, when MAGI is between 500k and 600k with form 2555, the computation is not correct for the current software.

Yes, but the system only use the AGI to compute the SALT upper limit, and set over $22k in the SALT section. 
So I think this is a bug in the system. 

DaveF1006
Employee Tax Expert

SALT upper limit, when MAGI is between 500k and 600k with form 2555, the computation is not correct for the current software.

We would like to take a look at this just to verify if the program is indeed using AGI and not MAGI to compute the upper limit. To investigate, I need a diagnostic file which is a copy of your tax return that has all of your personal information removed. All we see are numbers in your return.

 

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.
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andyzhen
New Member

SALT upper limit, when MAGI is between 500k and 600k with form 2555, the computation is not correct for the current software.

Token ID: 1336119

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