IRS Discrepancy

[spohrerga]

Turbo Tax says I should get a refund of $3,390.

The IRS actually refunded $3,798.

I pulled the 2022 IRS transcript and the discrepancy is in the self employment tax.

I am not complaining because I got more than I asked for.

But it seems like there is an issue in Turbo Tax?  Don't they guarantee accuracy?

[tagteam]

See https://ttlc.intuit.com/turbotax-support/en-us/help-article/account-management/turbotax-100-accurate...

[Opus 17]

We can't see your tax return so we don't know what might have happened.  You can try calling customer support and asking them to do a screen share with your account.

Turbotax guarantees accurate calculations, but doesn't guarantee that your inputs are accurate, and there is no way of knowing what happened without a detailed look at your return and the IRS transcript.  Also, the accuracy guarantee will pay interest and penalties if you owe them as a result of a calculation error, but there is no payoff from making a claim on the guarantee if you owed less tax.  

[spohrerga1]

I am happy to (privately) send Intuit my return file as well as the IRS transcript.

I am not going to post it on this forum.

There is no data entry error.  TurboTax and the IRS disagree on the amount of self employment tax.  Every other number matches up.

Let me know

[Opus 17]

If you contact support, there is a procedure to send them an anonymized version of your file, if they are interested in the discrepancy.  (It's also not impossible that the IRS screwed up.  It has been known to happen.)

https://ttlc.intuit.com/turbotax-support/en-us/contact

[taxlady28]

What you could post here is the diagnostic number and possibly someone on here could investigate.  You would click Add a State, Tools, Tax Tools, Share my file with agent and post the six digit number that comes up.

[fanfare]

Check your 1040 Line 13 for a zero amount from TurboTax.

If you qaulify for this credit, IRS may have added it for you.

@spohrerga1 

[VolvoGirl]

Here's a thought.  Do you have any W2s?  Are you married?  You may have assigned a W2 or even the schedule C to the wrong person.  If you have W2 income the SE tax has a max.

If you have W2 income, you have to break out the Social Security and Medicare taxes.   The Social Security part maxes out.

The SE tax includes what you already paid in from your W2 (box 4) so your schedule SE tax will only be the difference up to the max amount of $9,114.00 for social security. The max for social security for 2022 is 6.2% of wages plus schedule C net profit up to $147,000. Medicare is 2.9% (both er & ee parts) of all wages & schedule C profit - no max.

[VolvoGirl]

So check your W2s.  You may have entered box 4 wrong (or left it out).  That won't show up anywhere on your tax return except in the SE tax.  Look for the $408 difference in W2 box 4 or less if the IRS added interest to your refund.  

[spohrerga1]

No W2s.  Just 1099s and Schedule Cs.  And all the Turbo Tax income numbers match the IRS transcript.  The self employment tax is different which also affect AGI becuase half the SE tax is an adjustment.

[spohrerga1]

SOLVED!

I did some screen sharing with Turbo Tax.  They told me that you never enter data in forms mode - you have to use Easy Step/Interview.  I re-entered my Schedule C information using Easy Step and now things match up, SE tax matches etc. 

So I guess I am done with Forms Mode.

[VolvoGirl]

Well that info would have been good to know and we could have figured it out.  When you post you need to include you use the Desktop program and not Online and you used the forms mode.

So you entered everything in the Forms?   You figured the SE tax amount wrong?  How did you calculate it?  What was your schedule C Net Profit.  Were you able to efile if you entered into forms?   That should prevent you from Efiling.  

[spohrerga1]

Mac - Desktop version - TurboTax Deluxe

So you entered everything in the Forms?

Yes

You figured the SE tax amount wrong?

No, TurboTax calculated it.

How did you calculate it?

I didn't

What was your schedule C Net Profit.

None of your business

Were you able to efile if you entered into forms?

I couldn't efile  because the IRS and I did not agree on prior year AGI

(I now know I could have entered zero...)

That should prevent you from Efiling.

[NCperson]

@spohrerga1 

<<None of your business>>

you could have been more polite about this response.  Something like "I'd prefer not to provide".

these are anonymous posts so most will post their income information when asked because they get better answers that way.  

everyone is a volunteer and not paid by Turbo Tax.

A little humility will serve you well.