Problem with Schedule H line 26?

Forum|Forum|5 years ago
February 17, 2021
8 replies
63 views

It seems TurboTax's math for line 26 of Schedule H is wrong. For line 26 you are supposed to add "line 16 (or 24) and line 25". However, for me TurboTax is adding lines 16+25+ 8b. Is this happening for anybody else?

TurboTax Premier Online

kandpaggarwal

Level 2

Yup. Check out my post from yesterday: https://ttlc.intuit.com/community/taxes/discussion/turbotax-confirmed-schedule-h-is-incorrect-wait-for-update-before-filing/00/1938336

DaveF1006

Level 15

Actually what happens is that if you report an amount in 8B, it gets adjusted by the amount of FICA taxes paid and reported in box 8c. This calculation then is transferred to box 25 of Schedule H. This calculation is combined with line 16 (or 24) and reported in line 26.

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"

kandpaggarwal

Level 2

Correct, but that is not what the current TurboTax calculation is doing. 8c is 8a-8b. And then 8c gets transferred to line 25. What the TurboTax software is doing, I believe, is transferring 8a instead of 8c into line 25. It shouldn't be doing that (unless you opt to defer the non-refundable portion of the tax break). I called the IRS and they confirmed this. I also ran the exact same calculation through H&R Block's software, and got the correct output (meaning H&R got the same number as my payroll and what the IRS told me it should be). So TurboTax needs to update their code (which they acknowledged and are in the process of doing).

DawnC

Employee Tax Expert

This is a known issue and is being worked on. Line 26 on Schedule H is adding line 8b in addition to line 16 and line 25 and it should not be. The new Form 7202, Credits for Sick Leave and Family Leave for Certain Self-Employed Individuals is a new form for 2020 and all of the needed adjustments to Schedule H have not been finalized. Please check back later as guidance on this experience will be coming soon! @kandpaggarwal

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"

Blue 04321Author

Level 2

Thanks everyone for your help. I spoke with a CPA at TurboTax and after some work, we discovered it had to do with deferring payment on estimated taxes. I was clicking "skip" because I didn't want to do it. Instead, click "continue" and then click "no".

That worked and it was correct!