The IRS informed that my 2019 tax is off and that I owe more money. They said the computation of what Turbo Tax put in the form is off (line 12a -1040 form?

[paulkayporsha-ya]

IRS says -Line 12a -1040 form is wrong on calculation.

[macuser_22]

Line 12a is the tax on the line 11b taxable income.   What did they change that changed the tax?

[Critter-3]

Did the CP2000  indicate something else was incorrect ?   Line 12A is the tax computation which the program usually gets 100% correct and it is based on the data entries you made on the return so review what the letter says and what you entered in the return to see what is different. 

[paulkayporsha-ya]

The tax that the IRS told me what they got was 100% correct when I did the calculation from the tax table, I'm at the 24% rate and the tax is $28,765 and 24% of the the amount above $168,400. Is there a way to change that tax rate so I can input it myself? I looked at my 2020 return and the tax in block 12a does not reflect the calculation as above. So, I'm concerned about my 2020 taxes- I may owe another $800 +

[paulkayporsha-ya]

IRS said that figure on Line 11b was correct but the IRS calculated the tax using the 24 % married jointly tax table. When I did the calculation to what the IRS said it was correct. The tax for the 24% filing is $28765 plus 24% of the amt over $168400. The turbo tax was lower

[mesquitebean]

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@paulkayporsha-ya wrote:

IRS said that figure on Line 11b was correct but the IRS calculated the tax using the 24 % married jointly tax table. When I did the calculation to what the IRS said it was correct. The tax for the 24% filing is $28765 plus 24% of the amt over $168400. The turbo tax was lower

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Did you have any capital gains and/or qualified dividends in 2019 and 2020?   If so, those are taxed at a lower tax rate than ordinary income.   With those items, the calculation is done on the Qualified Dividends and Capital Gains Tax Worksheet instead of solely the Tax Tables.   Does your 2019 return have a QDCGT Worksheet?

Also, if you have a PDF of your 2019 return with all the worksheets, look at the Form 1040 Worksheet.   It should indicate the method that TurboTax used to figure the amount of tax.   

You can also look at the 2020 Form 1040 Worksheet to see the method that TurboTax is using to calculate your 2020 tax, and the 2020 QDCGT Worksheet, if applicable.

[paulkayporsha-ya]

Yes, I do have that and it did cause the tax to be at the figure the IRS is disputing. I guess I would need to take that to the IRS for clarification. Is that correct? Thx

[Critter-3]

By any chance did you MAIL in the return ?    If so this may be an IRS date entry error so you need to disagree with their conclusion and respond with a copy of the return and the tax worksheet in the program ... save a PDF of the return to see the QDCGTW showing how the program computed the taxes.  

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[Mike9241]

this is almost certainly an IRS error for the reason that if it was a Turbotax calculation error that would affect virtually every return filed using it. if you had long-term capital gains and/or qualifying dividends your tax would be lower than what would be computed using the tax tables.  you say you did. that gives further credence that there was an error by the IRS.   

[paulkayporsha-ya]

Thank you all for the help. Yes, I do have that worksheet and will dispute their claim. Will let you know. But thank you again for the assist.

[paulkayporsha-ya]

Thank you all again. I had to pay, which they suggested or more penalties would be assessed. And they said to write to dispute the charges for a refund. I would say they got me by the gonads but I thank everyone for the help.