TurboTax State Taxes Paid Calculation Incorrect

The amount being shown on 1040 Schedule A, line 5a, is not matching the total of the state taxes paid as entered into the W-2 and 1099R portions of the program ($10205 vs. $9228).  This incorrect number is feeding into my New Mexico PIT-1 line 9a entry, even though the parallel calculation on the NM Tax Payment Worksheet in the program reflects the correct number ($9228). 

 

Has anyone else noticed incorrect calculated amounts in their 1040 Schedule A on line 5a, and is this a bug in work or is their a fix?

ThomasM125
Expert Alumni

State tax filing

Line 5(a) would also include state income taxes paid in 2020 from 2019's state tax return. Also, it would include the amount in line 19 of your W-2 form, local income taxes. Also, if you paid any state estimated taxes that would appear in line 5(a).

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State tax filing

Copy!  That found the missing number, but how does state tax owed for 2019/paid in 2020 flow into the number that shows up on line 5a? I can't find it the specific area where that's added.  The new version of the "Schedule A lines 5-12 Tax and Interest Deduction Worksheet" doesn't clearly spell it out for me. <sigh>  That's where it was captured for 2020.

 

I anyone still pushing for a flat tax? 😉

KrisD15
Expert Alumni

State tax filing

You should find it under

 

ONLINE

Federal

Dedications & Credits

Income Taxes Paid

Other Income taxes Paid in 2020

balance due on your 2019 state taxes paid in 2020

 

DESKTOP

Federal Taxes 

Deductions & Credits

Scroll down to Other Income Taxes (under Estimates and Other taxes Paid) 

Oher Income Taxes paid in 2020

 

It is listed on the State Tax Deduction worksheet 

 

State and Local Tax deduction is limited to 10,000 

 

 

 

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Geomguy
Returning Member

State tax filing

i just got a tax refund from State... TurboTax miscalculated so I paid more... my Federal tax is almost twice of last year, I'm guessing TurboTax messed up again but the only way to tell is to 1. wait for the Feds to refund the overpayment or 2. file an amended return. (if they did this to me they likely did this to you... class action?)

State tax filing

My State was GROSSLY incorrect.  Was supposed to get $3000 back, got letter from state and a lovely refund of $440....UNREAL.  Will see if audit defense is worth it's weight or not, but calculation guarantee is a joke as it only covers penalties and interest....how about being 75% off on your calculations?

State tax filing

If you think the program made an error put in for the accuracy guarantee ...

 

Our TurboTax Satisfaction Guaranteed Refund Policy

 

What is the TurboTax 100% Accurate Calculation Guarantee?

State tax filing

How do I report a possible error in the turbo tax calculations?  I am working on a very simple tax situation where it only has Estimated State taxes paid.  The total on Schedule A, line 5a seems to double deduct the estimated 2021 tax paid in 2022.  Almost like one formula adds the total estimated tax paid in 2021 adds all but the payments made in 2022, and then another formula takes that estimated tax paid, and deducts the 2022 payment again.  

BillM223
Expert Alumni

State tax filing

Are you using the CD/download software for TurboTax?

 

If so, go into Forms Mode, then go to Schedule A, then double click on the numeric field for line 5a. 

 

This should should you the Tax and Interest Deduction Worksheet. Anything odd there?

 

Now go find (on the left) the Tax Payments worksheet. Double click on this. Does this list only the payment you expected, or twice as many?

 

I have run a simple test, and I don't see any doubling.

 

 

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State tax filing

I just changed how I entered the data,  I only entered the state estimated tax if it was paid in 2021.  So by excluding the amount paid for 2021 that was paid in 2022, TurboTax can't double deduct it and now the total works out as expected.

i.e (California is weird, they skip the 3rd payment)

4/1/2021$800 estimated state tax paid

6/1/2021 $1000 estimated state tax paid

1/1/2022  $1000 estimated state tax paid

 

I expect the total to be $2800 for California estimated taxes, which is what is listed in the worksheet, but in the actual Schedule A line 5a has 1950.  (which appears to be 2020 estimated tax paid in January of 2021 of $1150 + 4/1/2021 payment of $800 = $1950).  I'm guessing the estimated payments is applied for the year you make the payment, so it shouldn't count the $1000 made on 1/1/2022.  If one formula only adds the payments made in 2021, and another formula uses that total and deducts payments made in to 2022, it all adds up to the line on Schedule A line 5a.  

State tax filing

I'm using the CD version and it did update, but I was thinking of trying again with a basically stripped down version of 2020(so it can do use the payment made in 2021) and 2021 taxes.

 

State tax filing

Yes only the state payments actually paid in 2021 are deductible on federal Schedule A.  So that would include a 4th quarter 2020 estimate paid in January 2021.  Also a state tax due you paid in 2021 for 2020 or prior years.  

I don't understand your last post about using 2020 program?

State tax filing

1950?  So what happened to the June payment 1,000?   Schedule A should be 2950 plus any tax due you paid and any state withholding.   Make sure you picked the right state in the drop down box when entering the estimated payments.   

ps.....that's why people try to pay the 4th Quarter State estimated payment by Dec 31.  

State tax filing

I don't understand your last post about using 2020 program?

 

so when I import it, it will show my 2020 California estimated tax payment I paid in 2021.

State tax filing

If the Jan 2021 payment for 2020 didn't transfer over you can just enter it.  You don't need to start over and transfer from 2020 again.  That would mean start over with a brand new 2021 return and entering everything again.