@rjs
Thank you. And you are right it's from Schedule 2 which further points to differences in Form 8960. I am pasting below the answer I gave in response to VolvoGirl, but I failed to use the @ to indicate that – will do that moving forward. Thanks for the advise.
In addition to the pasted response below, to answer your question about the extra $174, yes it's a penalty on Line 38 of Form 1040 – the penalty was $187 on Line 38 before entering the $100k and it becomes $361 afterwards (an increase of $174). So, the resulting increase, separate from the penalty is indeed $3800 which is the exact difference on Line 23 before and after. Also, I'm using TurbTax Deluxe 2023 (all updates made to the application).
So, as you put it why is a 1099-MISC causing all those side effects?
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You are right, when comparing the two tentative filings, one before entering the $100k and -$100k and one afterwards, the one afterwards picks up an additional $3800 in Schedule 2 Line "12 Net investment income tax. Attach Form 8960" where the amount goes from $1,033 (before entering the $100k and -$100k) to $4,833 (after entering the $100k and -$100k).
If I then go to Form 8960 to compare before entering $100k & -$100k vs afterwards, the one afterwards has $100k on both Lines 4a and Line 4c (the one before has those empty) and then Lines 8 and 12 and 16 are all raised relatively by $100k ($27,193 before entering $100k & -$100k versus $127,193 afterwards). Then Line 17 is up from $1,033 to $4,833. Other lines all match whether empty or filled (amounts in Lines 1, 2, 13, 14, and 15 all remain the same).
So, any ideas of why the +$100k makes it to Form 8960 and then have a +3,800 effect in Schedule 2, EVEN THOUGH the $100k is supposed to be canceled by the -$100k?! The strange thing is that if the +$100k entry were 1099-DIV it does entirely get canceled by the -$100k entry – not the case unfortunately when the +$100k was a 1099-MISC.
I really appreciate your feedback and questions – they are are all spot on and I feel like we are onto something.
