SALT deduction error

[gotty10]

So, I actually had filed both my Federal and Idaho State return, and the Idaho return was filed with the error mentioned in this string.  This past Friday, February 13th, I received my refund from the State of Idaho- they processed the return without realizing the issue (probably because they actually trusted that TurboTax would provide a correct and accurate return).  As a result, I got about $90 more than I should have, but I'm ok with that...

[haleyrsd]

Thanks for responding on this post, rolanddawson2500.  I should have copied the Oklahoma stream here when I commented on the Oklahoma post yesterday.

@DawnC and @SusanY1, TurboTax has confirmed there is an issue with SALT calculations for Oklahoma filers, but I have not yet seen any updates regarding the SALT calculation errors reported by Idaho filers two weeks ago. 

 Has TurboTax recognized this error for Idaho returns? Is it being corrected and is there an ETA for completion? In the meantime, is there a way for me to file my federal return now and my Idaho return later?

[MelindaS1]

We're aware of the issue and I'm following up on that now @haleyrsd In the meantime, yes, you can file Federal first and then wait to file the Idaho return after the Federal is accepted. I understand this isn't ideal. 

In TurboTax Desktop, navigate to Step-by-Step > File > File a Return; from there, the prompts will allow you to choose which return(s) to file. The option is available in TurboTax Online as well.

More info from FAQ - How do I e-file my state after I already filed my federal?:

Although you can e-file your federal and state taxes together, if you choose to e-file your federal first, you'll have to wait until that return has been accepted before you can e-file your state.

If your federal hasn't been accepted, or you printed and mailed it, you won't be able to e-file your state but you can print and mail a paper return.

Married filers: If you e-filed your federal using the joint married status, but you want to e-file your state returns separately, only one of you will be able to e-file. The other must paper-file their state return.

See also: I don't want to file my state return

[user17723054585]

Any update on this? This error is still showing up as of today. 

[haleyrsd]

@MelindaS1 are there any updates on the SALT calculation error for Idaho taxpayers? It’s been two weeks since your last reply when you were checking into the status.

[MelindaS1]

Sorry for the delay. They were able to confirm treatment with the state of Idaho (this was causing a wait), and we're hoping for an update to be pushed through this week. Wish I had better news, but the issue is progressing. 

[patty-lovato]

Hello   have similar issues in Colorado.   

State and local

  5a $26,745 

 5b 8,430   

5d   $35,175.     

However  the SALT calculation in 5e is $10,000 instead of the $35,175.     Please advise.

[Ptmmryan]

This is still an issue as of 3/8/2026.  The issue I’m having is with line 14 of form 40.  ITC updated their instructions 3/2/2026.  Any idea when TT will push through the updates?  Horrible time explaining to anyone with TT on the phone. 

[RogerD1]

Based on the information you gave, it sounds like you are looking at Federal Schedule A and are wondering why line 5e is at $10,000?  Although the SALT limit increased to $40,000 for the 2025 tax season, it is limited by income and starts phasing out for Adjusted Gross Incomes (AGI) above $500,000 (or $250,000 for Married Filing Separately) until AGI is equal to or greater than $600,000 at which point the maximum SALT deduction is $10,000.  You can see this calculation in the State and Local Tax Deduction Smart Worksheet on Schedule A in Forms view in the desktop version of TurboTax.

Colorado also has a State Income Tax Addback on Line 2 of Form 104 if you had itemized deductions on your Federal tax return.

If this information doesn't answer your question that you had, please reply back with as much detailed information as possible about the question/issue you are seeing - this will help us to better help you.

[Ptmmryan]

Roger,

My Federal Schedule A line 5b is $4495 and 5c is $149.  TT is populating Idaho Tax form 40 line 14 as $5356, which presumable is ($10,000-$4495-$149).  Page 8 of Form 40 instructions from Idaho Tax Commission updated 3/2/2026 says "If you use federal schedule A to itemize, follow these instructions: If federal Schedule A, line 5d is: more than $40,000 (mine is $43,658), subtract lines 5b and 5c from line 5e, and enter the amount here.  Enter zero for any result less than zero."

Based on these instructions line 14 should be ($40,000-$4495-$149)=$35,356

Please let me know if this is just something TT has not updated yet due to the late passage of the Idaho Conformity law or if I just don't understand the calculation.

Thank!

[Ptmmryan]

My 5e on Schedule A is $40,000 by the way.

[RogerD1]

@Ptmmryan As you likely know already, Idaho conformance to provisions in the One Big Beautiful Bill Act were only legislated into law on February 17, 2026 - and - based on your own research, Idaho only published the updated instructions a week ago.  Tax software takes time to be reprogrammed, updated, tested, and certified by the taxing agency before changes can be released for use.  Because this change occurred only recently, TurboTax software has not yet been updated to incorporate the changes necessary to conform to Idaho law.

You have a couple of options:

• You can continue to file your return as is with the understanding that there is a potential for calculation changes.  Once updates are made in the program, you can amend your return.
• You can wait until updates are made in the program and then file your return once these updates are ready.

At present, I'm unable to get you any information about when to expect TurboTax to be updated to conform to the recent Idaho legislation.  TurboTax does have a statement they are using at the start of the Idaho state return workflow that addresses the options stated above.  Check back over the next few weeks to check for updates to see if the Idaho state tax software is ready.

Another option you have is to only file your Federal return once it is ready and file your Idaho return at a later date when the updates have taken effect.

[haleyrsd]

If you read the thread, the issue that has been reported is related only to the SALT limit and how to add the income back into the Idaho form for tax payers who itemize. This thread and requested necessary correction is not related to the other changes resulting from the OBBBA that Idaho recently passed. The formula in the Idaho instructions handles the new SALT limitation perfectly; however Turbo Tax is not using the correct formula, resulting in an incorrect add-back if the SALT amount is over the previous $10,000 limit.

@MelindaS1 two weeks ago you reported the correction had been verified with the state of Idaho, and Turbo Tax expected the correction to be made within the week. Has this correction been implemented?

[RogerD1]

Since Idaho recently passed legislation to conform to the One Big Beautiful Bill, including the SALT limit, plans are in the works to implement these recent changes to the Idaho software and the update is expected to be in place by about March 19th.  You can continue to check for the message from TurboTax at the beginning of the Idaho state preparation to see if the update is ready.

[MelindaS1]

@haleyrsd my apologies for not giving more regular updates. The fixes on our end were placed on hold until the Idaho legal situation was finalized in early March.

As it stands now, as Roger said above, we're anticipating that the state program will be fully updated by a tentative date of March 19th, but again, that's still a moving target. 

My recommendations are to check back again, on or after Thursday, Mar. 19th and:

Step 1) Make sure your desktop software is fully updated (Mac) OR clear your browser if using T.T. Online

• Note: See the FAQ here if you experience software update issues (Mac vers.)

Step 2) Open your return and select State Taxes to verify the New Idaho Tax Law Changes warning screen has been cleared.

Step 3) Complete your return, run the error check, and file as usual.

If the warning screen is still present:

1) @ Tag Roger on Thursday the 19th for more info, or contact customer support.

2) Tag me @MelindaS1 starting on Saturday the 21st for more information.

If I get any updates that are concrete between now and then, I'll return to this thread and others in Community. I haven't forgotten about the ID state issue; it has been a dynamic situation, and I understand this has represented both delay and difficulty.

An additional note: If the matter is urgent, there is still the option to file your state return now as-is and amend it later on, as per the Idaho Changes screen.