Amending 2022 - is there a software glitch?

Forum|Forum|2 years ago
March 26, 2024
10 replies
71 views

As I begin the amendment steps, rather than seeing a $0 balance (as the instructions say to expect), I get a "mystery" refund amount. Turns out the software has added the original 2022 HSA employer contribution (coded W on the W2) to the AGI (line1 column A), and flowed it down through to the tax liability (line 11, column A). Then the software "subtracted" that HSA amount in from AGI in column B, causing a reduction in total tax (line 11 column B) of that mystery amount. That flowed to line 16 causing an overstatement of tax amount paid with the original return. Very strange... short of manually preparing the amendment, is there a solution? FYI - Desktop/Deluxe edition...

BillM223

Level 15

I don't know why TurboTax is making these changes, but let me make these observations:

1. The code W amount in box 12 on your W-2 is removed from Wages in boxes 1, 3, and 5 before your W-2 is printed. This is how "employer" HSA contributions (which include your payroll contributions) are a benefit - they are never in your income at all.

2. Your description makes it sound like the Code W amount is added to the AGI in column A (which could be explained by #1), and then code W amount is removed from AGI in column B but I am not clear on when this happens.

3. You seem to say that the code W amount reduces tax at some point, which would not seem to be right - the code W amount is income, not tax.

Your concerns require some research; please give us a little time to look at this.

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GayleS03Author

Level 4

Thanks for your observations... I started a detailed response, but realize it gets muddy once you start describing dollar changes on multiple lines. Feel Free to em me if you want any precise info. I'll just add that there was also some movement in the "other taxes" line, first adding a modest amount in column A, then taking it out in column B. I suspect the inflation of AGI may have triggered some other tax, but can't identify what it is. I think you realize, this is all happening before I make any amendment related "adjustments." Thanks for whatever you can do....

BillM223

Level 15

Note that column A comes from your existing return. Column C is what the correct value should be. Column B is basically the calculate difference between the two.

In rereading your original post, don't worry about column B, but just make sure that Column C has your changes.

Also, make sure that the HSA contribution that was added to the AGI in line 1 Column A needs to be removed from income somewhere down the line in Column A somewhere before tax is calculated. Is it?

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