We did NOT have any entry on Schedule 1 line 16 Self-employed SEP, SIMPLE and did NOT have any qualified plan.
It seems like there is bug in the system. As I mentioned before system was showing different amount due just before e-filing and it changed after e-filing. It appears in the backend the system is not updating properly if both spouses are NOT covered by retirement plan at work and calculating wrong deductions for Traditional IRA contribution.
Because of this error we have to pay $5,500 more in taxes right now. I understand we can file the amendment later but it takes for than 16 weeks for the IRS to process it. Even we file for amendment through TurboTax, I believe it will still calculate wrong as how it is doing right now.
Thanks
Sunil Gupta
