I just discovered an error on my 2019 federal return, form 1040SR. TT entered 13850 in box 9 (standard deduction) when it should've been 12200. This caused my taxable income to be incorrect, causing my tax calculation to be incorrect. TT calculated my tax to be $7081 when it should've been 7462 which means I owe the IRS $381 more. I would think Turbotax's guarantee will make good on this error.
Before I explain the error, please note that TT calculated the tax on my taxable income of 51092 to be 7081. Per the IRS tax table, the tax is calculated as follows:
If my income is 39475 to 84200, my tax is 4543 + 22% of the amount over 39475.
51092 - 39475 = 11617.
11617 x 22% = 2556.
4543 + 2556 = 7099.
It's only an $18 difference however TT's calculation was incorrect.
Correcting the box 9 standard deduction error from 13850 to 12200 increases my taxable income from 51092 to 52472. The tax per the 2019 IRS tax table should be calculated as follows:
52472 - 39475 = 13267
13267 x 22% = 2919
4543 + 2919 = 7462
7462 - 7099 = 363 additional tax owed the IRS (per its tax table).
I don't know if TT's tax calculation would come out the same. Remember the $18 difference.
Please advise asap. I'd really appreciate a phone call during the day at my work number--[phone number removed]. Thank you.
Michael H
