Question
SALT Deduction Limit – Line 9 of State and Local Tax Deduction Limitation Smart Worksheet
I have a question regarding the State and Local Tax Deduction Limit – Smart Worksheet in ProSeries.
On line 9, the worksheet instructs to “enter the larger of the amount on line 8 or $10,000 ($5,000 if MFS)”. However, when line 8 is blank, ProSeries is populating $40,000 on line 9 instead of the statutory $10,000 SALT cap.
As a result, the worksheet is allowing state income tax plus real estate taxes to exceed the federal SALT limitation, causing itemized deductions to be overstated and higher than the standard deduction for an MFJ return.
Could you please clarify:
- Why ProSeries is inserting $40,000 on line 9 when line 8 is blank?
- Whether this behavior is expected, or
- If line 9 should instead default to $10,000 ($5,000 if MFS) in accordance with the federal SALT deduction limit?
Thank you for your assistance.
