I just received a mailed notice from the IRS telling me I owed $378.32 for 2020 1040SR.
I quickly spotted the problem. Turbo Tax calculated a $375 credit on its Recovery Rebate Credit Worksheet.
The problem with that, is my AGI, on line 11 was $178,495. Since it is more than $150,000 (for married filing jointly), I should not have been able to realize any credit at all.
I'm surprised and disappointed that the 2020 Turbo Tax had no limit formula built into its worksheet. I only learned of this $150,000 ceiling from the IRS letter I just received.
So clearly I owe the IRS for the $375 credit, which I was not allowed to take. However, due to Turbo Tax error, I'm also forced to pay $16.00 for "Failure to pay proper estimated tax penalty" and $3.32 for interest.
I would expect Turbo Tax to credit me $19.92 on my next purchase, but I'm not going to expend any more effort in getting it. I've used Turbo Tax since it was first "born" and have used it ever since. I'm also a long term investor in Intuit. I would recommend it to anyone, and this is the very first (and hopefully only) formula error I have encountered. I hope this message will serve as an alert to examine the formulas on that worksheet. Keep up the good work.
Bud Carlson, CPA
St. Louis, MO
