After again reviewing the IRS letter we received....it definitely is the STIMULUS payment. Because they show the same calculations for taxable income as before...but what changed is the credit.....disallowed the Stimulus Credit So, it doesn't look like it is the taxes that were incorrectly calculated by Turbo Tax the first time around like I thought,So.......
How do I amend using TURBO TAX (Deluxe Edition) to calculate that credit and the taxes correctly? I have amended it, to include the business deductions and entered the Stimulus ($2800) back in the right place...but after just entering that little bit of business deduction, which lowered our AGI to $149,806, below the Stimulus threshold of $150,000 to claim credit, it lowered our taxable income to $123,656 BUT shows now that we owe $988. It jumped our taxes from $18,105 to $18,701? Now showing we owe $988? Wouldn't those taxes decrease because our Taxable income decreased? Nothing else changed..... we added that small business deduction. This is what it looks like on the AMENDED return.
AMENDED AGI $149,806 (Original $150,010)
Taxable Income Correct Amount $123,656.00 (Original $123,819)
Total Tax Correct Amount $18,701.00 (Original taxes $18,105)
Total Payments/Credit Correct Amount $18,105.00 (Original $16,962) Both amounts include the $1,143 we paid in with original return.
Payment Due $988.00 (Original $1,143.00)
On the IRS letter it shows they disallowed the $2800 Stimulus Recovery because our AGI was $10.00 above the allowed AGI.
Can anyone help? I have less than 10 days to get this corrected with the IRS per the IRS deadline date.
