Got a Bill for Federal Taxes Owed and Saw that Turbotax did not catch the amount owed

[cytibbs]

When I filed my taxes using TurboTax 2023 it said I paid $64k in taxes from one of my W2s.  The other W2 I entered showed that there were zero dollars in federal tax withholding. It seems the federal tax I owed on the second W2 was not calculated because, you guessed it the IRS sent me a follow up saying I owed $12k more in federal taxes which would align to what I owe on the W2 where federal tax was not withheld. I think there isa bug where a W2 with no federal tax withholding is not contributing to the total amount of tax actually owed.    

[VolvoGirl]

No it wouldn't be for that.  Did both W2s box 1 show up on 1040 line 1?  Then you got taxed on it.  Did you have a refund or how much tax due line 37 on the original return?  Did you pay the tax due?  Your only proof of payment is your bank or credit card statement showing it coming out.  Turbo Tax does not pay it.  They only send your bank info to the IRS or state for them to pull it out of your account.

The IRS letter should say what they changed.  One thing to check is did you have excess Social Security on 1040 Schedule 3 line 11 which goes to 1040 line 31.

[VolvoGirl]

Oh, where did it say you had 64,000 withholding?  Is that the amount on the actual W2 box 2?  It goes to 1040 line 25a.  Did you import the W2s or manually enter them?  That seems very high withholding.  

[cytibbs]

W2 #1 has ~64,000 in Federal Income tax witheld

W2 #2 has zero Federal Income Tax witheld

1040 Line 24 Total Tax - ~77432

Federal Income Tax Withheld Total 25d = 66,228

These are the numbers on the forms I filed and what the IRS sent me. Somehow in TurboTax I see this other amount for 13,000 on 1040 line 31 from Schedule 3 from, "Amount paid with request for extension to file (see instructions)" on line 10 with the 13,000. Thus, on my 1040, when I filed it says my payments were for $79,228, but I never paid this $13,000 and for the life of me can't find it in the software at all where this $13000 came from. I think the IRS is right, but I am pissed off that TurboTax has seemingly added this random 13,000 to my filing so I got hit with $290 penalty and $103 interest. 

[cytibbs]

Its my W2 withholding, the other was zero. See answer to the other guys for details. 

[JotikaT2]

TurboTax prepared your tax forms based upon the information you entered into the program.  It sounds like the W-2 forms may not have been entered correctly in the program when you prepared your return.

I recommend reviewing all of your W-2 forms and totalling up the amount of the federal income tax withholdings in box 2 and comparing that total to the amounts reported on the IRS notice notifying you of the changes.  If the IRS is correct, then you can follow the instructions on their notice.

As far as the $13,000 paid with extension, that would only be entered under Deductions and Credits, and specifically under Payments with 2023 federal extension based upon input in the program.  

If you feel the error was the result of something on the TurboTax side, you can submit a request for a review using this link.

Please read through the information and if you qualify for the terms, you can proceed to submit your information which will be reviewed.  If the claim is approved, you may be reimbursed for any penalties and interest from the date of your first notice from the taxing agency. 

@cytibbs 

[VolvoGirl]

@cytibbs   Did you file an extension or started an extension?  The extension seems to show you were going to send in $13,000 to cover the tax due on your return.