TT specialist LOL......
I will continue to wait for the IRS to provide guidance.
Thank you for providing this article. It addresses a different problem than the one I was having. The article describes a fix to calculating the MAGI and determining the proper subsidy; in those cases, taxpayers would pay more taxes than necessary. In the case of this self-employed health insurance deduction, it is overstated for the reasons I gave previously.
TurboTax has been UPDATED today 05/07/2021
Self-employed health insurance deduction amount has CHANGED.
Schedule 1, Part II, line 16 (Self-employed health insurance deduction) amount went DOWN. approx -$600
Schedule C, Qualified Business Income Deduction Smart Worksheet)
.......................line 5a (Self employed health insurance for this business) amount went UP +$30
Federal Tax Due went UP approx. $80
CA refund went UP approx. $10
I ran the REVIEW tab and the that message about the American Rescue Plan did NOT appear. it went straight to the Tax Summary for 2020.
So it looks like the FIX IS DONE here.
Now I will file.
patience paid off...
update: I just checked and both Federal Return Accepted and State Return accepted!!
Well, you were right, and I was right, and the TT specialist was wrong. I should not have followed her direction to file the return. With the software update today, my self employed health insurance deduction was lowered to the correct amount that I was telling her it should be. Now I have a filed return that is incorrect. One day. Turbotax, please contact me about this.
Same here - suspected there were issues as identified on an earlier post I made, but filed nonetheless, as it was unclear if TT was going to fix it by deadline. Many of us will probably have to amend this year, unfortunately. Question is: will TT notify and assist us, or will we have to wait for the IRS letter to come in the mail.
I am in the same situation. I sensed the bottom line was wrong but I filed a few days ago and the return was accepted. Not only was it accepted, but yesterday the IRS withdrew the tax payment from my bank account. I owed money this year due to considerable income from stock sales.
TurboTax is congratulating me for being finished with my taxes. But today I ran the update and the meter jumped $80 against me, identical to another poster today. So I filed an incorrect return and the IRS accepted that incorrect return and therefore accepted the incorrect settlement. Now what do I do? I could send the IRS a check for $80 with an explanation or I could wait to see if I am contacted. Big mess and inconvenience all the way around. TurboTax should not have specified that end of April fix date if it was uncertain. Fixing on May 7 with a May 17 federal deadline would not have been a big deal if we hadn't been promised end of April. May 7 this year is the equivalent of fixing on April 5 in a normal year. I often file beyond April 5, including this year.
I filed and it was accepted last week - my State deadline was back in April 20. My Federal balance has gone up $42, and my State has gone up $23. What do I do? Tired and exhausted with this. I've never had to refile before.. do I, or do I wait again? Not happy that my taxes may not be correct.
So much for the "100% accuracy, guaranteed" statement. Silence from TT on this - not happy AT ALL!
Can I even refile in TT?
Original poster here! Just wanted to give a quick update. Already filed my federal return after waiting until after the 30th, my return was accepted. No changes from my accepted return were made from my rejected return, it was the same amount. Haven't filed my state return because MN is still working out some conformity issues. When I logged in today, even though my federal return was accepted almost a week ago, the number that's showing as my federal return amount on the top of the webpage is $78 dollars less than what my accepted return amount is. So I'm thinking like others have been saying here that the fix happened well after the 30th, and I'm afraid my return is now wrong. Haven't received my refund yet, and I don't know if they will adjust accordingly. But this is crazy. Almost makes me not want to file taxes quarterly and just take the penalty at the end of the year in order to keep my money until it's actually time to pay. I don't know if it's worth trying to contact TT, seems like every time I call in it's some low level person who has no clue what's going on. Has anyone actually talked with a "tax expert" that was helpful?
Exact same situation here! Logged in to Turbo Tax yesterday to start a new return for someone, Turbo Tax updated and CHANGED my already filed and accepted return. Just not acceptable. The figures from this 2020 tax return will be used in the coming year for many purposes -- FAFSA for college, scholarship applications, etc. What figures do I use? Figures from the return I filed, or figures from newly updated file within TurboTax.? Don't want to generate data matching issues! Or what if I need to print a copy of my FILED return, that TurboTax has now updated -- which version do I use and can I even access the forms from my filed vs updated return? (Rhetorical questions, just trying to give examples of why this is not acceptable and not professional). Guess the answers will depend how the IRS handles my return in the coming months, if no IRS letter and the amount of my refund isn't adjusted, I guess I go with my FILED return ...
The tax expert was helpful, but then steered me wrong and told me to file; the software update came out a few days later! In any case, I called back and got one of the "temps" who of course was just struggling to know what was going on. I personally have decided to wait to see if I get anything back after the IRS has accepted my return; since the difference is relatively small, I doubt that I will hear anything. If I do, I can always amend my return later. I'm sure not going to amend it now with the huge backlog, and me waiting on a $10,000 refund.
Once a return has been filed and accepted for processing by the IRS or state you should do NOTHING but wait for the original returns to be processed ... and this year processing may happen in multiple steps meaning you may get the original refund first and then the balance after the changes later. AND if this changes the amount of third stimulus payment you are entitled to then that difference will come in yet another payment. Patience will be needed until the IRS can process the millions of returns stuck in the system due to lack of resources and personnel.
Only when the IRS/state is fully finished should you attempt to amend any return if one is still needed. The late tax law changes which affected the Unemployment and PTC will be automatically applied to your filed return if you go to open the return so you need to open the return BEFORE starting the amendment process so that you can check and see if your return looks like what was changed as those figures must be entered on the Column A of the form 1040X. This will not be easy to do for many folks like in the past and seeking professional assistance may be needed this year ... thanks to the fools in congress for messing up the tax filing system yet again.
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