Scheule 1-A (Form 1040)

[FlashForward146]

Turbo Tax is not calculating the Senior "Bonus" deduction correctly on my tax return.  Perhaps it is because of the instructions on LIne 35 (PART V) which say to subtract $600 from line 34.  This is not correct because the return in question has MFJ with both taxpayer ove 65.  This means that they are entitle to a $12000 enhance deduction.  With line 34 indicating the phase out amount, line 35 should subtract this amount from $12000 dollars to arrive at the correct enhanced deduction.  It does not do this.  You do not lose, or have phased-out,  6% of the entire amount (that is over $150000) and then multiply it by two (2) to arrive at the enhgcnce deduction.  The $6000 bonus deduction is a "per person" deduction which either needs to take 1/2 of the amount over $150000 and then multiply by 6% (Line 33), or take 1/2 of the line 34 amount and then subtract it from $6000.  Then multiply this result by two (2).  

[CatinaT1]

The deduction is automatically calculated by TurboTax if you qualify. The calculation will appear on Schedule 1-A page 2, Part V Enhanced Deduction for Seniors, which is then carried to your Form 1040 line 13b. 

The maximum deduction is $6,000 for each person 65. There is a phaseout of the deduction once your income (MAGI) exceeds $75,000 for single or $150,000 for married filing jointly (MFJ). On a joint return the phaseout is calculated separately for each person.

On a joint return the phaseout is calculated separately for each person, so the 6% phases out for each spouse. This deduction is intended to provide tax relief for seniors and is in addition to the existing Standard Deduction or your Itemized Deductions. Expires December 31, 2028.

[VolvoGirl]

Sorry, Turbo Tax is doing it right. This is a common misunderstanding. If you are both over 65 and in the phaseout amount, the 6% reduction is subtracted from EACH spouse's 6,000 effectively making it 12%.

Line 35 is only 6,000 . Read the line, it says....subtract line 34 from $6,000 $6,000 is the max for line 35. Because the reduction is calculated on each person's 6,000, even on a Joint return, when both spouse's are over 65.

It is phased out for EACH spouse. Fill out Sch 1-A yourself and see. It's pretty easy. Then why would they even have 2 lines 36a and 36b for spouse on Schedule 1-A?

IRS Schedule 1-A
https://www.irs.gov/pub/irs-pdf/f1040s1a.pdf

Here is the official IRS Schedule 1-A

See IRS instructions for 1040 Schedule 1-A on page 110
https://www.irs.gov/pub/irs-pdf/i1040gi.pdf

Here's a chart I made.........