I just checked Wheres my Refund and found that the IRS found an error in my return. The taxable social security amount was wrong, line 20b. I checked it manually and found a problem on the social security worksheet which added the amount on the 1040 line 15a instead of the amount on line 15b(I am a US citizen residing in Spain and per the tax treaty between US and Spain, my IRA withdrawal is only taxable in Spain). This caused my US taxes to decrease ove $1,500.00 which is not the problem. The problem is I have to refile my Spanish taxes, decreasing the amount I declared under double imposition and this will cost me at least 110.00€ just ro refile and possible interest and fine to be determined later. What happened to cause this error?
That was a software error discovered only recently in the past month or so. It's fixed now, but that doesn't help those who have already filed.
The good thing for most folks in the USA, that this may have impacted, is that they will now get some more $$ back from the IRS, without a downside.
But you have a downside in your situation, You can apply for relief under the TTX Accuracy Guarantee if you want to try, but that would only affect penalties and interest, and I don't know if they will actually pay those in your exact situation, in that they specify penalties for Fed or State.....
Sometimes, the extra work involved for payback is worse than the penalty involved.....but that's up to you. You would start here:
That is what I thought. Thanks for the confirmation. I guess I will just do what I have to here and live with it. I just started TurboTax again while connected to the internet and got the update. It did correct the problem but there is still a small difference ($85.00) between the amount of the IRS refund and the amount calculated by TurboTax. I am going to wait to get my requested transcript and see what is different between the two. That should be about 2-3 week for an international transcript(Can't get an online transcript as I don't have a US phone)
I just did some checking and it appears that this problem goes back at least two years. The problem showed up in both my 2015 and 2016 files. I am lucky in that the error did not cause a change in my reported SS benefits. I had some contract work in both those years and that caused the smaller of my calculated taxable SS benefits to be based on my wages. I am not going to look back any further.