2025 Senior Deduction under the OBBB

[VolvoGirl]

@theady   Here’s my spreadsheet I made for someone else having  211,000 AGI close to yours.  My spreadsheet matches the IRS and Turbo Tax 

[maryherndon54]

Volvogirl is correct.  The 6% calculation is per person, not per couple.    This would be 100% fair if the upper threshold for MFJ was $350,000 (2 x $175,000) .  But it isn’t.  It’s $250,000   So in effect, there is a marriage penalty.  I was confused at first myself.

[dillar]

In the Online version, when you do the "Explain my Taxes" in "Federal Review" you get this:

Your total deductions for the year were $xx,xxx, including:
- Itemized Deductions: $xx,xxx
- Deductible mortgage interest, $xx,xxx
- Deductible Charitable Contributions, $x,xxx
- State and Local Tax Deduction, $xx,xxx
- Qualified business income deduction, $5,296    <==== This should read as Senior Deduction not QBI

When I hand calculate based my income 5,296 is the correct calculation for Senior Deduction.  It's just the wrong description in this Review page 

[natural-52]

Right now SC is adding the $12000 back plus another $1500 adjustment to the standard deduction. What to do?

[theady]

Thanks for the clarification. Seems there's a penalty baked into the calculation for married filing jointly. Not surprising.

[SuziM]

Hi @user17691893285 

Thank you for reaching out and sharing your experience; we would like to investigate this issue further.  If you’re willing, we would like to ask if you could provide a Diagnostic File of your return.  This copy will be purged of all personally identifiable information.  If you are willing, please follow the instructions provided below to get us the information we need. 

TurboTax Online​

1. Sign-in to your online account. ​ 
2. Select "Pick up where you left off"
3. Click on “Tax Tools” to the left hand side of the screen. ​ 
   
4. Select "Tools" 
5. A drop-down will appear. Click on “Share my file with  Agent”. This will generate a message that a diagnostic copy will be created.
6. When the token is generated, be prepared to type in your notes or in a message (unable to copy and paste) 
7. Click “OK”.  The tax file will then be sanitized and sent to us. This action will generate a Token Number  
8. Please respond directly to this message and provide the Token Number that was generated.  

TurboTax Desktop  

1. Open your return. ​ 
2. Click “Online” and select "Send Tax File to Agent". ​ 
3. This will generate a message that a diagnostic copy will be created. Click “OK”. The tax file will then be sanitized and sent to us. This action will generate a Token Number  
4. Please respond directly to this message and provide the Token Number that was generated.  

Please confirm what version of TurboTax you are using.