Question

I live in Illinois, which is a credit reduction state, and I don't think TurboTax is correctly handling my Schedule H. Has anyone else noticed this problem?

Forum|Forum|3 years ago
February 12, 2023
1 reply
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I don't think it's applying the credit reduction and filling out Part II of Schedule H right.

TurboTax Self Employed Online

You're correct that Illinois was a credit reduction state in tax year 2022, but please clarify -- what's leading you to believe the computation is incorrect?

The calculation procedure for household employers in a credit reduction state can be found in Worksheet 2 in the Instructions for Schedule H.

If you can supply the figures from your Schedule H that are relevant in Worksheet 2 (i.e., lines 1 and 2 of the worksheet), perhaps we can help you determine what's going on.

1

17JonathanAuthor

Thank you so much for responding. Schedule H lines 20, 21, and 22 all look correct. $7000 in wages subject to FUTA tax (line 20), and then the multiplication on line 21 ($420) and line 22 ($378) is accurate. But when I do Worksheet 2 on the instructions for Schedule H, it tells me that I should be putting $357 on line 23 because there is a credit reduction of $21 (I lived in IL all year and paid taxes there). However, TurboTax just enters $378 on line 23 of Schedule H, which I think is wrong. And then my eventual tax calculation is off by $21. I looked at the TurboTax smart worksheet for this section and it doesn't have any calculation on it.

I really think that I have this right and TurboTax is doing it wrong, but please tell me if that's not right. I really appreciate your help.

AmyC

Employee

There is one screen in federal that changes the figures on Sch H by filling in Section B lines 17-19. I have entered your information and my lines 21 and 22 match yours.

The problem has to be in the State Information screen as line 23 says to choose the smaller of line 19 or 22. The sch H line 23 changes each time I change a variable in this screen and then calculates properly.

Return to this federal screen and verify your entries. Both the state rate and tax paid are required. Both of these boxes must be filled in for the program to work.