Turbo tax calculating taxes wrongly

Forum|Forum|1 year ago
January 25, 2025
2 replies
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My taxable Income is $366,673, TurboTax calculates the tax to be $76,170

However, my calculation using Tax-table (different methods) all point to $74086. This is the same exact number shown by other online calculators.

Why is turbotax is showing wrong number?

Moreover, it doesn't show how it calculated and we have to pay first to see the Tax-form filled-up. Why should I pay before knowing if it's calculating correctly? It's ridiculous that they make such mistake and not allow us to check mistake before paying.

Also, there is mistake in the taxes paid, it adds extra $1761 on top of actual total taxes paid of $75039. Again we can't see the details how it invents this error without paying upfront. Ridiculous experience.

Which other software can we use to file-tax?

TurboTax Deluxe Online

Best answer by mesquitebean

or estimated tax penalty if the $76k at issue is the outcome of line 37 and what is due to the IRS, not line 16

desktop calculates line 16 fine for the $74k and I am sure online does too

frankly the best way to resolve this is for @pradyiitm to pay for the software in some form either online or desktop as needed to see the details and understand the return or fix the data. It's extremely unlikely to be a calculation error in TT it's going to be the data it's been given for the return.

@ pradyiitm

Do you happen to have any foreign earned income and used the Foreign Earned Income Exclusion? That can increase the tax on the non-excluded income.

TurboTax often uses other tax calculation worksheets aside from or in addition to the Tax Tables, depending on the circumstances in the return. Here's how to check:

If you are using Online TurboTax, here's how to look at your Form 1040 prior to paying, where you can also see a box as to what method(s) TurboTax is using to calculate your tax.

With your online return open, go to the left menu column and click on TAX TOOLS, then TOOLS.

In the Tools window, choose VIEW TAX SUMMARY.

When at the Tax Summary screen, go back to the left menu column and choose PREVIEW FORM 1040.

While previewing the Form 1040, scroll down to Line 15.

Just below Line 15 is a Tax Smart Worksheet that shows the methods TurboTax has used to calculate the tax.

baldietax

I've not tried TT online but you may be better off in the download version of TT where you can certainly see all the forms and worksheets etc before filing/paying anything (but you have to pay for the software but they have a 60 day refund policy). Been using it for 20 years and never had any issue with the calculations.

You can buy the download version direct from TT or certain retailers, recommend the latter as there are some good discounts at places like Amazon right now.

https://ttlc.intuit.com/turbotax-support/en-us/help-article/intuit-product-orders/obtain-authentic-turbotax-programs/L1yYfitCw_US_en_US?uid=m6c4e2up

Direct TT pricing and download page

https://turbotax.intuit.com/personal-taxes/cd-download/

There are some system requirements however so be sure to check

https://turbotax.intuit.com/personal-taxes/cd-download/tta-system-requirements/

SteamTrain

Employee

Could be the extra Medicare tax, or if you have some Self-Employment income, could be the added Self Employment tax.

Yeah, the suggestion to use Desktop software instead of the "Online" software, on a full Windows or MAC computer does let you see the calculation forms at any time (Windows has much better operation/fewer bugs).

BUT

You can also see all the forms, including the tax calculations, with the "Online" software, by going to the Print Center and downloading a copy of your tax file as a PDF...but you need to get the copy with all forms and worksheets, since the file-only copy is just the filing sheets. Of course, you have to pay for the software you are using before you can get that PDF.

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*

pradyiitmAuthor

The taxable income calculations are as expected (no question of them having extra income added). Just the TAX calculated is OFF by ~$2000 from the number it should be based on the 2024 tax slabs.
It says blended-tax-rate of 20.8% where as it should have been 20.2%. So there is some problem with the tax-rate used to calculate. I don't think the IRS tax-calculation methods have any ambiguity.

I can't pay them to see the form or Tax calculations before I know if their calculations are correct (they have no-refund policy.. even if there is a mistake your money is gone). Have to use some other tax-software unfortunately.