Lacerte appears to not be correctly limiting the tax deduction to 20,000 reduced by the calculated limitation on a MFS return. Anyone else seeing this?

cwebb2237 · ‎04-09-2026

The program is using 40K instead of 20K as its starting point to reduce the SCH a taxes deduction.

The limit is correctly calculated based on income in excess of 250K times 30% but subtracts the calculated limit from 40K, when it should be 20K

Jojo94404

Wait....where are you getting the $20,000 from? Is this for a taxpayer with filing status Married Filing Separately?

cwebb2237

Thanks for your interest!

Yes, married filing separate (mfs), sorry for use of the acronym to describe the issue. The taxpayers live together, they are filing separately for non-tax reasons (student loan related)

taxpayer and spouse are both itemizing. They had over 40K in taxes paid. They made 576,000 on a joint return. I believe each person should get to deduct $11,400 due to the income limitation, ($20,000-8600). The software is starting with 40K and subtracts 8,600 to arrive at 31,400 and allows each taxpayer 15,700. Not correct in my understanding.

I believe Lacerte knows about this based on a customer support call that wasn't productive, nor gave any confidence as to correct treatment, but hasn't corrected or notified any of us of the issue.

Jojo94404

Omg….lack of sleep is catching up with me, I guess! I read the “MFS” as you being frustrated but didn’t want to write the whole “bad word or phrase” here! I responded to your question because…,well…I could relate to that!!! 😂😂

Kathi_at_Intuit

Hi @cwebb2237 Thanks for posting in the Community about Lacerte not limiting the tax deduction to $20k. We are not seeing anything reported on this at this time. If you believe the calculation is not aligning with the expected treatment, we would recommend challenging the calculation so it can be reviewed further. If you do submit a challenge, please be sure to include all requested information outlined in the “Before you start” section of the Support article provided.

**Say "Thanks" by clicking the thumb icon in a post
**Click "Mark as Best Answer " to mark the post that answers your question.

TaxGuyBill

@Jojo94404 wrote:

Omg….lack of sleep is catching up with me, I guess! I read the “MFS” as you being frustrated but didn’t want to write the whole “bad word or phrase” here! I responded to your question because…,well…I could relate to that!!! 😂😂

🤣

That's awesome! 😂

Lacerte appears to not be correctly limiting the tax deduction to 20,000 reduced by the calculated limitation on a MFS return. Anyone else seeing this?

©1997-2026 Intuit, Inc. All rights reserved.

Intuit, QuickBooks, QB, TurboTax, and Mint are registered trademarks of Intuit, Inc. Terms and conditions, features, support, pricing and service options subject to change without notice.

By accessing and using this page you agree to the Terms and Conditions.