Problem with Schedule H line 26?

[Blue 04321]

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?

[kandpaggarwal]

Yup. Check out my post from yesterday: https://ttlc.intuit.com/community/taxes/discussion/turbotax-confirmed-schedule-h-is-incorrect-wait-f...

[DaveF1006]

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.

[kandpaggarwal]

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]

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 

[kandpaggarwal]

Well, before I brought it up with TurboTax and they spent three days researching it, they did not know it was an issue. Only yesterday did they finally acknowledge that there was an error. So while many tax experts may say it is a known issue, most common folk who are doing their taxes have no idea this is a known issue. That is why I posted on this forum to alert others that the issue exists and not to file before this is resolved. I realize it is a new form, but like I said, other tax software programs like H&R Block have no issue with this. The form tells you exactly what needs to be done.  So it is TurboTax's coding on the back end that is causing issues.

Also, I believe Form 7202 is for self-employed individuals. This is in reference to Schedule H for caregivers/nanny.

[DawnC]

All of what you say is true and thank you for posting this helpful info.   But because Schedule H has payroll taxes on it (social security and medicare FICA), Form 7202 can be used with it.   Household employees are still employees and employers can take the credit if they paid their household employees sick leave.   If there were no 7202, the calculation would have never been modified and thus there would be no error on Schedule H.   @kandpaggarwal

[Blue 04321]

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!

[kandpaggarwal]

Glad that worked for you! TurboTax also updated their software 2 days ago. I let the program run the update and viola, it worked!