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tax calculation

Forum|Forum|2 years ago
February 26, 2024
2 replies
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I have been using Turbotax for more than 10 years. I never had problem with the software.

I am filing my 2023 return and I find the federal tax is way higher than it should be.

It looks a software or a logic bug. How can I report this or get someone to check on it?

Thanks.

Forms

Best answer by mesquitebean

First, look to see what method TurboTax is using to calculate your tax. It often doesn't go by the IRS Tax Tables alone. There are alternate calculations it sometimes has to use. For instance, if you have capital gains and/or qualified dividends, it uses the Qualified Dividends and Capital Gain Tax Worksheet. Or do you have Foreign Earned Income--if so, it uses the Foreign Earned Income Tax Worksheet. Did you by any chance have foreign earned income and used the FEI Exclusion? Here's how to see what calculation worksheet(s) TurboTax used to calculate your tax:

If you are using desktop software, open your return and go to Forms Mode. Bring up the Form 1040 Worksheet. Scroll way down and between lines 15 and 16 of the Worksheet is a box called Tax Smart Worksheet. That will show you where the tax calculation came from.

Also print out a copy of your 2022 and 2023 returns and compare them line by line. When you spot a discrepancy that is larger than your expected year-over-year change, examine the details of that item to see if you spot a problem. Look for things like an incorrect entry, transposed figures, commas/decimals in the wrong place, etc.

If after all that, you're still concerned something doesn't gel, you can speak to the folks at TurboTax Support.

TurboTax Support hours are 5AM-9PM Pacific (8AM-12 Midnight Eastern), 7 days/week

FAQ: What is the TurboTax phone number?
https://ttlc.intuit.com/community/using-turbotax/help/what-is-the-turbotax-phone-number/00/25632

M

mesquitebeanAnswer

Employee

First, look to see what method TurboTax is using to calculate your tax. It often doesn't go by the IRS Tax Tables alone. There are alternate calculations it sometimes has to use. For instance, if you have capital gains and/or qualified dividends, it uses the Qualified Dividends and Capital Gain Tax Worksheet. Or do you have Foreign Earned Income--if so, it uses the Foreign Earned Income Tax Worksheet. Did you by any chance have foreign earned income and used the FEI Exclusion? Here's how to see what calculation worksheet(s) TurboTax used to calculate your tax:

If you are using desktop software, open your return and go to Forms Mode. Bring up the Form 1040 Worksheet. Scroll way down and between lines 15 and 16 of the Worksheet is a box called Tax Smart Worksheet. That will show you where the tax calculation came from.

Also print out a copy of your 2022 and 2023 returns and compare them line by line. When you spot a discrepancy that is larger than your expected year-over-year change, examine the details of that item to see if you spot a problem. Look for things like an incorrect entry, transposed figures, commas/decimals in the wrong place, etc.

If after all that, you're still concerned something doesn't gel, you can speak to the folks at TurboTax Support.

TurboTax Support hours are 5AM-9PM Pacific (8AM-12 Midnight Eastern), 7 days/week

FAQ: What is the TurboTax phone number?
https://ttlc.intuit.com/community/using-turbotax/help/what-is-the-turbotax-phone-number/00/25632

M

mesquitebean

Employee

@pinet

ADDENDUM:

If you're using Online TurboTax, I can tell you a different way to look at the Form 1040 Worksheet and the Tax Smart Worksheet to see the calculation method, or how to view/download a copy of your 2023 return containing that worksheet.

C

crankydad

@mesquitebean would you please share how to find this in TT online. I cant find it anywhere.
Its not even in the downloaded PDF when I include all worksheets!!

P

prisclark

You might want to spend the $50 to do the "talk to an advisor" thing. I had some surprising outcomes as well but the person I spoke to (within 3 minutes of calling) sorted out what was happening pretty quickly. In my case the MISC form that is now a NEC form for income requires a schedule C to complete. But my schedule C for this business gig was already uploaded from last year, so I ended up with two and double reporting the income.