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I am writing to report a critical issue I encountered while filing my 2024 tax return using TurboTax. My adjusted gross income was $48,000, and a portion of my income came from Social Security. However, TurboTax failed to correctly calculate that 85% of my Social Security benefits should have been taxable based on my income level. As a result, I recently received a notice from the IRS assessing additional tax owed. Upon reviewing the return and investigating the cause, I discovered that in the "interview" section of TurboTax, the question "Are You a U.S. Citizen Living Abroad in One of These Countries?" defaults to "YES." This is highly problematic. I am a U.S. citizen living in the United States with a U.S. mailing address. I did not actively use the Interviewer, as I have over 40 years of experience preparing taxes and typically work directly with the forms. This incorrect default setting caused TurboTax to incorrectly exclude a portion of my Social Security income from taxation, leading to a tax deficiency and IRS notice. After researching this further, I found that numerous other users have reported the same issue, yet the software has not been corrected. This default makes no logical sense for the vast majority of TurboTax users who live in the United States. I urge you to address this issue immediately in your software and provide guidance on how users can ensure it is set correctly. Additionally, I would appreciate information on how TurboTax plans to assist affected users who incurred penalties or interest due to this programming flaw.

Michigan Department of Treasury confiscated most of my Michigan refund stating that I needed to include a copy of my North Dakota income tax return to verify the income from outside of Michigan, as well as the income tax paid to North Dakota. Nowhere in TurboTax is there any mention of including a copy of my North Dakota return with my Michigan return. As a result, Michigan is now holding $1,559 of my $1,869 refund until this matter is resolved.  I've sent what they asked for, but it appears they are very slow in resolving these situations. I suggest TurboTax brush up on Michigan (and other states) requirements regarding income attributable to another state.

I filed for an extension on both Fed and State (PA) on 4/14/25; made estimated payments to both entities (by EBT) on the same day 4/14/25.  Withdrawals were made for both payments by the next day.  Problem is - here we are almost a month later and the IRS website still says they have not received my tax return.  Under 'Payments' it shows the amount I paid them, but it shows as 'Pending'.  The state website basically says the same thing - that as far as they know, I have not yet filed.  Is this normal for it to take them so long to process an extension?  I've tried calling the IRS number, but there doesn't seem to be a way to get to a live person, and the computer that answers the phone doesn't seem to understand my question, so it basically says it is unable to help me, then hangs up the phone! Secondly - I am ready to file my returns now, but I'm worried if I file the returns before the extensions go through, would that mess things up somehow?  It has been suggested to me from acquaintances to hold off on filing my returns until the extensions go through, but who knows when that will be? Thanks in advance for any help on this matter.