The 2023 federal filing was started April 2024 after the 2022 had been filed April 2023. I discovered a classification error I made on my wife's Federal Disability Annuity on the original 2022 filing. It started after she passed her Minimum Retirement Age (MRA), so it is not taxable. Once I corrected the her Federal Disability Annuity our MFS total income fell below $150,000 and part of the accumulated Rental Income Loss, was allowed ($25,000).
TurboTax did not reduce the accumulated Rental Income Loss balance, so the full $25,000 was included in the 2023 calculation.
This seems like a calculation error due to a lack of re-import of the accumulated remaining Rental Income Loss on Form 8582 once 2022 had been amended.
do you really mean you filing status was married filing separately. in that case the $150,000 is reduce to $75,000 and the $25,000 is reduced to $0 if you did not live apart for the whole year
Mea culpa. We are filing jointly. The 2023 beginning accumulated Rental Income Loss amount does not reflect that $25,000 was used to reduce the total. Seems wrong.