Over 65 Tax Exemption

swalsh8770
swalsh8770 Quicken Windows Subscription Member ✭✭
in Errors and Troubleshooting (Windows)

Looking at the 2026 Tax Planner, I am having a difficult time understanding how Quicken is calculating the over 65 tax exemption. It appears to add the $12K for married couples fine, if you do not exceed the $150K threshold. But, if you do go over that limit, the deduction does not appear to be calculated based on the IRS rule invoked. It is suppose to be decreasing the $12K by $.06/dollar over the limit. I have this calculation in an Excel s/s, and the two calculations do not match. Since Quicken does this calculation "behind the scenes", I cannot see how they are doing the actual calculation. Has anyone else experienced an issue with the deduction calculation?

Comments

  • Jim_Harman
    Jim_Harman Quicken Windows Subscription SuperUser ✭✭✭✭✭

    Are you running the latest Quicken version (R65.29)? The calculations may not be correct in earlier versions.

    QWin Premier subscription
  • swalsh8770
    swalsh8770 Quicken Windows Subscription Member ✭✭

    Yes,I am running the latest and greatest!

  • volvogirl
    volvogirl Quicken Windows Other SuperUser ✭✭✭✭✭

    FYI - On a joint return the phaseout is calculated separately for each person, so the 6% phases out for each spouse.  Here’s one spreadsheet I made. I think I have another one too.

    SS 60001.jpg

    I'm staying on Quicken 2013 Premier for Windows.

  • markus1957
    markus1957 Quicken Windows Subscription SuperUser, Windows Beta Beta

    The calculation in the planner matches the IRS calc by reducing the $12K amount by $0.12 for every dollar of AGI over $150K. There is also the $2K charity deduction to consider in 2026 so don't let it throw you off. And double check your spreadsheet is correct.

  • swalsh8770
    swalsh8770 Quicken Windows Subscription Member ✭✭

    Ah, so the $0.06 is per person, ergo that $0.12 for a married couple. Thank you both for your answers. I will go through my calculations again!

  • swalsh8770
    swalsh8770 Quicken Windows Subscription Member ✭✭

    So, I guess there is still a small issue since Quicken does not calculate MAGI.

  • swalsh8770
    swalsh8770 Quicken Windows Subscription Member ✭✭

    Ah, just found out that you do not need to add the non-taxable portion of social security fot MAGI. That makes the Quicken tax function correct sinceit only uses AGI!

    For the New Federal Senior Tax DeductionNo, the nontaxable portion of your Social Security benefits is not added back when calculating MAGI for the new temporary federal senior deduction (up to $6,000 for single filers or $12,000 for joint filers for the 2025-2028 tax years). For this specific calculation, the MAGI is generally your Adjusted Gross Income (AGI) plus only a few specific items like excluded foreign earned income. 

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