SALT deduction error

Forum|Forum|4 months ago
January 30, 2026
3 replies
1 view

I just completed my 2025 federal and Idaho state returns through TurboTax. Due to the $10,000 SALT deduction limitation in prior years, there is a calculation in the Idaho return that would add back only the portion of my state withholding that met this threshold. So, in 2024, I paid $3,900 in property taxes, and $7,140 in Idaho withholding ($11,040 total), and my 'addback' for Idaho itemized deductions pertaining to state and local taxes on line 34 of the Idaho return reflected only $6,100, as the additional $1,040 in Idaho withholding was not actually deducted on my Federal return, as that portion exceeded the $10,000 SALT limitation.

Now, for 2025, I had $4,150 in property tax and $7,525 in Idaho withholding ($11,675 total). The law has changed, and now the SALT limitation for 2025 is at $40,000, so the entire amount is deductible for Federal purposes. However, my Idaho return line 34 shows the 'addback' of $5,850, instead of the entire $7,525 that I recognized on my Federal return. I believe the entire $7,525 should have been added back when figuring my 2025 Idaho Itemized Deductions, since it was all deductible on my Federal for this year.

TurboTax PLUS Online

LittleBirdie

Level 2

Just chiming in to say my SALT deduction is inaccurate as well. It populates zero for my property taxes when it's comparing it to sales tax. Ugh!

RobertB4444

Level 15

Idaho has not passed the laws that would put it in alignment with the federal laws yet. They are still considering the bill that was proposed on January 29th.

You can wait to file your Idaho tax return to see what decision the state legislature makes or you can file your return now with the $10,000 cap still in place and then amend your return later if the legislation passes.

@gotty10

@LittleBirdie

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haleyrsd

Level 3

The answer from the employee tax expert is incorrect. If you look at the instructions for the forms provided by the Idaho State Tax Commission at https://tax.idaho.gov/wp-content/uploads/forms/EFO00089/EFO00089_10-02-2025.pdf , the formula for Idaho Form 43/Line 34 and the formula for Idaho Form 40/Line 14 both take into account the updated SALT limits. Specifically, if the filer is married and Line 5d of Federal Schedule A is great than $10,000, the Idaho form instructions give the following formula (using data from Federal Schedule A):

Line 5e - Line 5c - Line 5b

Instead TurboTax is clearly using the formula:

$10,000 - Line 5c - Line 5b

I called TurboTax yesterday and am awaiting an answer with the results of their research.

gotty10Author

Level 2

To help us evaluate this issue more clearly, it would be helpful if we could have a diagnostic copy of a return with this issue.

To send us a diagnostic copy (which is a copy of the data and entries stripped of personally identifying information, please follow these steps:

From any page in the TurboTax online software (except Tax Home):

Click on Tax Tools in the menu on the left hand side of the screen
Next, click on Tools
In the pop up box click on Share file with an agen”
Return to this thread and post the token code that appears on the screen so that we can link that file with this question

If you are using TurboTax desktop, the send file to agent command is under the Online menu.

Thank you for responding. Unfortunately, because I have already filed my Federal and Idaho State returns, the only available options when I go into TurboTax are the 'Tax Home' Screen and 'Documents' Screen. Neither one of these windows shows the 'Tax Tools' option, so I am unable to provide that to you. Is there a way for you to grant me permission to gain access to get to my input screens?

Fun_with_Taxes

Level 2

At least for Idaho filers, I found that going into the forms directly and modifying the calculation for line 14 works to correct this issue and does not block electronic filing. It is obviously up to you on whether to try this or wait for Turbo Tax to complete their updates.

(1) Go to View -> Forms

(2) Select Idaho Form 40

(3) Go to the worksheet for line 14 - "State And Local Income or General Sales Taxes Worksheet"

(4) Override line e in the worksheet to match Federal Schedule A, line 5e

(5) Double-check that the calculation matches the Idaho instructions

This is obviously a work-around, so, again, your call on whether to try this or wait.

Ptmmryan

Level 2

I keep seeing comments about going to “View->Forms” but I can’t seem to find it. I’m using the online version and not Desktop. Are the Forms only available on the Desktop version?

Also with the online version there are no flags that suggest there are any updates to the Idaho calculations pending. It feels as if TT wants me to file an inaccurate return.