Amending 2022 - is there a software glitch?

[GayleS03]

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]

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.

[GayleS03]

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]

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?

[GayleS03]

Hi again, just to be clear.. all the numbers I am describing appear "before" any amended info is entered. Regarding column A - NO, it does NOT reflect original return info.... line 1 is overstated and there isn't a correcting adjustment anywhere in column A. So, AGI (line 1) is overstated, tax (line6) is overstated, an additional tax (line 10) was added and total tax (line 11) is overstated.  Thank you.

[BillM223]

This is puzzling. Would you send us a "sanitized" version of your return. "Sanitized" means that all personably identifiable data is removed so that we have no idea who you are.

You do not have to sanitize the return, because the process of creating a token (an entry into our data base that points to your sanitized return) invokes a process which removes all personally identifiable data.

To give us a token, please do the following:

Online

• Log into your TurboTax Online tax return
• On the left, click on Tax Tools
• Under Tax Tools, click on Tools
• In Tools Center, click on Share my File with Agent
• TurboTax will give you a “token”, a 7-digit number
• Post the token number in this thread
• Be sure to add to that post “@” “billm223” (without the space in between) so that I will be notified

Desktop (Windows)

• Open your return in the desktop product
• Look along the top and click on Online
• Click on Send Tax File to Agent
• TurboTax will give you a “token”, a 7-digit number
• Post the token number in this thread
• Be sure to add to that post “@” “billm223” (without the space in between) so that I will be notified

Desktop (Mac)

• Open your return in the desktop product
• Look along the top and click on Help
• Click on Send Tax File to Agent
• TurboTax will give you a “token”, a 7-digit number
• Post the token number in this thread
• Be sure to add to that post “@” “billm223” (without the space in between) so that I will be notified

[GayleS03]

"a""billm223"   1221226

[BillM223]

I have received your sanitized return, and I see what TurboTax did (although I am not sure why in some cases).

On the 1040X:

1, column A - this is the gross wage that your employer would have given you, had you not had an HSA employer contribution (code W in box 12 on your W-2).

1, column B - the code W amount

1, column C - the actual AGI on your 1040, Line 11

*** so actually, your 1040X is starting off correctly, subtracting the HSA amount was confusing but the result in 1, column C matches your 1040, line 11, so it is correct.

2, columns A and C - these are the correct standard deduction, with no changes made.

Lines 3, 4 and 5 follow what happened in line 1 - odd looking, but correct.

I haven't been able to reproduce the tax on line 6, column A (its using the Qualifying Dividend/Capital Gain worksheet (but I can get to that number in line 6, column A, but not exact. But in a sense, it does not matter, because the number in line 6, column C is exactly the correct tax from line 16 on your 1040.

As for line 10 on the 1040X, I have been unable to locate the amount in line 10, column A - the only thing is that it is about 10% of line 4 on the Qualifying Dividend/Capital Gain worksheet  (i.e., the Qualifying Dividends and Capital Gains backed out of your income so that they can be taxed separately). Again, it's no matter because line 10, column C is the same value as line 23 on your 1040.

The net result is that column C on your 1040X is matching your current return before you make any changes, so that is correct. That being so, don't worry about the changes made in columns A and B.

[GayleS03]

I understand the inclination to disregard the anomalies if they aren't impacting the bottom line, but on this one, the tax overstatements from column A bleed over to lines 16-22 and leave me with a refund due. (There should be $0, etc.) 

I am going to have to paper file this one anyway because my change is something the software doesn't support, but thought it would be helpful on your end to provide as much info as possible. Thanks for the great communication, Bill. Take care! 

[BillM223]

"leave me with a refund due" - your original return had a sizable amount due, but when you filed the extension, that amount you paid with the 4868 changed it to a refund. So that is OK, too.

Yes, I had thought that a 1040X should start with a zero refund or amount due, but in the case, TurboTax is making a number of changes before you even start. The changes are all correct, just puzzling.

Give it a try.

[GayleS03]

Alas, I disagree.. You may not be tracking with me on this one key point  .... the return I sent you had NO changes made to it yet.... so the 1040-X it generates now should reflect the original return, assuming the original amount due was timely paid. That should generate a $0 in lines 20/21.  I do suspect there is a gremlin in there somewhere....